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Risk Exposure

All articles tagged with #risk exposure

finance2 years ago•3 min saved

March Madness: Hedge Funds and Banks Take a Beating

The market turmoil in March has caused many macro and trend-following hedge funds to suffer losses and cut bad portfolio bets. Algorithmic commodity trading advisor funds (CTAs) have also been hit hard, with losses of 6.8% this month. Hedge fund strategies based around macroeconomic ideas have also posted negative performances. The sudden collapse of two regional US banks and Swiss lender Credit Suisse has caught many hedge funds off-guard and left them with unexpected losses. CTAs have cut their entire long exposure of roughly $60 billion in equities in two weeks and are also cutting credit exposure.

via Reuters|

#ctas #finance #hedge-funds

finance2 years ago•3 min saved

Preparing for the Next Recession: The Flight to Safety

Traders are seeking safety in the stock market due to fears of a recession caused by tightening financial conditions. The recent collapse of Silicon Valley Bank has led to a repositioning of risk exposure, causing a substantial tightening impulse in financial conditions. The risks go beyond the problems in the financial system and include double-digit declines in banks' earnings if lending activity shrinks. Investors are instead dashing for industries perceived as more resilient to economic downturns, including food, pharma, and telecoms. Equity market volatility is not yet near the levels seen last week, but the outlook is negative, and investors are advised to go more toward cash and short-term bonds.

via Yahoo Finance|

#banks #finance #flight-to-safety