Hedge funds and systemic risk / / Lloyd Dixon, Noreen Clancy, Krishna B. Kumar

• Record Nr.: UNINA9910220157003321
• Autore: Dixon Lloyd S
• Pubbl/distr/stampa: Santa Monica, Calif., : RAND Corporation, 2012
• ISBN: 0-8330-7786-4; 0-8330-7788-0
• Edizione: [1st ed.]
• Descrizione fisica: 1 online resource (147 p.)
• Collana: Rand Corporation monograph series
• Altri autori (Persone): ClancyNoreen; KumarKrishna B
• Disciplina: 332.64524
• Soggetti: Hedge funds - United States; Mutual funds - United States
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: "MG-1236-CCEG"--P. 4 of cover.
• Nota di bibliografia: Includes bibliographical references (p. 107-115).
• Nota di contenuto: Cover; Title Page; Copyright; Preface; Contents; Figures; Tables; Summary; Acknowledgments; Abbreviations; CHAPTER ONE: Introduction; Potential Contribution of Hedge Funds to Systemic Risk; Research Methods; Organization of This Report; CHAPTER TWO: Background on the Hedge Fund Industry; Overview of the Hedge Fund Industry; Legal Structure and Role in the Financial System; Number of Hedge Funds and Assets Under Management; Restrictions on Investor Withdrawals from Hedge Funds; Characteristics of Hedge Fund Investors; Distribution of Funds in the Industry, by Size and Characteristics of Hedge Fund Advisers Hedge Fund Returns and Investment Strategies; Attributes of Hedge Funds That Amplify and Mitigate Their Potential Contribution to Systemic Risk; CHAPTER THREE: The Collapse of Long-Term Capital Management; Factors Leading to the Collapse of Long-Term Capital Management; The Rescue of Long-Term Capital Management; The Aftermath of the Collapse of Long-Term Capital Management; Lessons from the Collapse of Long-Term Capital Management; CHAPTER FOUR: Hedge Funds and the Financial Crisis of 2007-2008.; Factors Underlying the Financial Crisis Hedge Fund Contribution to the Financial Crisis Through the Credit Channel; Impact of Hedge Fund ; Losses on Creditors; The Failure of the Bear Stearns Hedge Funds; Hedge Fund Contribution to the Financial Crisis Through the Market Channel; Hedge Fund Contribution to the Buildup of the Housing Bubble; Hedge Fund Deleveraging; Short Selling; Hedge Fund Runs on Investment Banks; Assessment of Hedge Fund Contributions to the Financial Crisis; CHAPTER FIVE: Potential Hedge Fund Threats to Financial Stability and Reforms to Address Them; Potential Hedge Fund Threats to Financial Stability Lack of Information on Hedge Funds; Lack of Appropriate Margin in Derivatives Trades; Runs on Prime Brokers; Short Selling; Compromised Risk-Management Incentives; Lack of Portfolio Liquidity and Excessive Leverage; Financial Reforms That Address Hedge Fund Contributions to Systemic Risk; Reforms That Address Lack of Information on Hedge Funds; Reforms That Address Lack of Appropriate Margin in Derivatives Trades; Reforms That Address Hedge Fund Runs on Prime Brokers; Reforms That Address Short Selling; Reforms That Address Risk-Management Incentives Reforms That Address the Liquidity and Leverage of Hedge Fund Portfolios; Summary; CHAPTER SIX: Conclusion; APPENDIX: Regulatory Reforms That Address Potential Systemic Risks; References
• Sommario/riassunto: This report explores the extent to which hedge funds create or contribute to systemic risk, the role they played in the financial crisis, and whether and how the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 addresses the potential systemic risks posed by hedge funds.