{"id":5221,"date":"2006-10-31T00:00:00","date_gmt":"2006-10-31T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"hedge-funds-use-of-credit-derivatives-a-concern","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2006\/hedge-funds-use-of-credit-derivatives-a-concern.html","title":{"rendered":"Hedge funds&#8217; use of credit derivatives a concern"},"content":{"rendered":"<div class=\"p\">  SAN FRANCISCO (MarketWatch) &#8212; Hedge funds that don&#8217;t have much experience in the field may be using credit derivatives &#8220;inappropriately,&#8221; industry advisory firm Hennessee Group LLC said on Monday.<\/div>\n<div class=\"p\">\n<div class=\"p\">\n<div class=\"p\">\n<div class=\"p\">      Credit-default swaps, or CDS, are derivatives that provide insurance against a company going bankrupt. Investors pay an annual spread, or premium, in return for the promise of a payment in the      event of bankruptcy or a similar credit event. As the creditworthiness of companies change, the cost of this insurance fluctuates.    <\/div>\n<div class=\"p\">\n<div class=\"p\">\n<div class=\"p\">        CDS are a common investment and trading tool of credit hedge funds, which have used the derivatives effectively over the past five years, Hennessee, which tracks manager performance, said.      <\/div>\n<div class=\"p\">\n<div class=\"p\">\n<div class=\"p\">          However, equity hedge funds have begun trading CDS more during the past year too, making Hennessee concerned that managers who are inexperienced in derivatives markets may be using them in          inappropriate ways, the firm explained.        <\/div>\n<\/p><\/div>\n<p>      <a href=      \"http:\/\/www.google.com\/news\/url?sa=T&amp;ct=us\/5-0&amp;fd=R&amp;url=http:\/\/www.marketwatch.com\/news\/story\/story.aspx%3Fsiteid%3Dmktw%26guid%3D%257B00A24926-B281-4B50-B257-F8AE13DFAA5D%257D&amp;cid=1110757818&amp;ei=kWtHRbCqNriYHLO36McJ\">      <strong>Read Complete Article<\/strong><\/a>    <\/div>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>SAN FRANCISCO (MarketWatch) &#8212; Hedge funds that don&#8217;t have much experience in the field may be using credit derivatives &#8220;inappropriately,&#8221; industry advisory firm Hennessee Group LLC said on Monday. Credit-default swaps, or CDS, are derivatives that provide insurance against a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5221","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/5221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=5221"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/5221\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=5221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=5221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=5221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}