Funds Hub

Money managers under the microscope

Fewer arbs to iron out the bumps

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rtryqvsThe decline in the hedge fund industry is starting to impact some markets in which these free-wheeling vehicles once played, as Jane Baird’s article “CDS price quirks abound as arbitrage withers”┬ádemonstates.

She points out that the $45 trillion credit derivatives market is now full of pricing quirks because many hedge funds, once big arbitrageurs in the sector, no longer play here.

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