Restrictions on banks' ability to own hedge funds and trade for their own accounts would likely benefit the lesser-regulated private pools. The bill could push new investment and trading talent toward hedge funds. Limits on leverage and stiffer capital requirements for banks would give hedge funds an edge landing investors chasing bigger returns.
What this might mean is higher premiums due to less liquidity as well as new open spaces, new opportunities to entrepreneurial, talented traders and hedge funds. There would be limit and oversight for big hedge funds with assets over $100M, lowering incentives to create dominant positions (what banks PT units would leave) on stock market investing and trading and therefore opening opportunities to niche players like Alternative Investments Funds.
Sounds good.
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