04606nam 2200661Ia 450 991022015700332120200520144314.00-8330-7786-40-8330-7788-0(CKB)2550000001039433(EBL)1365154(SSID)ssj0000760684(PQKBManifestationID)11432627(PQKBTitleCode)TC0000760684(PQKBWorkID)10715298(PQKB)11592464(Au-PeEL)EBL1365154(CaPaEBR)ebr10678746(OCoLC)857365332(MiAaPQ)EBC1365154(EXLCZ)99255000000103943320120828d2012 uy 0engurcn|||||||||txtccrHedge funds and systemic risk /Lloyd Dixon, Noreen Clancy, Krishna B. Kumar1st ed.Santa Monica, Calif. RAND Corporation20121 online resource (147 p.)Rand Corporation monograph series"MG-1236-CCEG"--P. 4 of cover.0-8330-7684-1 Includes bibliographical references (p. 107-115).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 InvestorsDistribution 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 ThemPotential 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 SellingReforms 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; ReferencesThis 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.Rand Corporation monograph series.Hedge fundsUnited StatesMutual fundsUnited StatesHedge fundsMutual funds332.64524Dixon Lloyd S910145Clancy Noreen910146Kumar Krishna B48418Rand Corporation.MiAaPQMiAaPQMiAaPQBOOK9910220157003321Hedge funds and systemic risk2256796UNINA