Editor Pick – Who Are the Selloff Losers in Credit Markets?
From Eurointelligence:
“In her FT market column, Gillian Tett wrote about a survey by Citigroup, according to which hedge funds had moved out of credit risks in recent week, while traditional fund managers had moved in. She concludes that hedge funds are not going to be the biggest losers, but pension funds and commercial banks’ trading departments.”
And Bloomberg reports that investment banks’ stake in non-investment grade retained mortgage securities, or what it keeps from packaging loans into bonds, represents about 10-15% percent of the firm’s “tangible” equity, according to CreditSights.
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