Bad luck, bad timing and bad bets ..

Extreme levels of volatility and parched liquidity have shaken up the global hedge fund industry. Nikki Marmery reports on the winners and losers in the summer's relentless ride


Hedge funds have been assessing the damage caused by a calamitous summer's trading as mark-to-market losses wiped out previously healthy NAVs. Among a number of high-profile casualties were funds such as Sowood Capital, which lost about $1.6 billion, or more than 50% of its asset value - most of it in just one week in late July.

Wharton Asset Management's ABS-investing Y2K Finance fund was reportedly down by 25% by mid-September when it suspended investor redemptions and stopped calculating its

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Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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