Fitch Assigns Rising Credit Market Risk to Hedge Funds

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NEW YORK (HedgeWorld.com) - Credit-oriented hedge funds likely account for more than US$60 billion of the fixed-income market and are able to greatly influence markets through the use of credit derivatives and leverage, according to the most recent Fitch Ratings report.

Roger W. Merritt, managing director of credit policy at Fitch, said that is safe to assume that the actual amount of credit- oriented hedge fund assets has grown from when the US$60 billion was tallied last year.

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Fitch Assigns Rising Credit Market Risk to Hedge Funds

According to Fitch, hedge funds are more apt to invest in more illiquid market segments that promise greater returns, such as junior tranches of debt w...

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