HFM Week – Aima, the industry trade body, has released a paper arguing that credit hedge funds should not be considered part of the ‘shadow banking’ sector, in its latest attempt to defend the reputation of the hedge fund industry.
The research highlights the differences between the key functions of traditional banks and credit hedge funds, which “do not take deposits, do not offer daily liquidity nor otherwise hold themselves out as guaranteeing the return of the invested principal,” according to an Aima statement.
