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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: Real Man who wrote (53364)10/7/2013 12:45:12 PM
From: ggersh  Read Replies (1) | Respond to of 71454
 
If Boehner and the rest only realized how "stupid"
and insignificant they are....-s-

Should they let us default it's game, set, match,
as it is it's match point, but who's watching?



To: Real Man who wrote (53364)10/7/2013 2:49:02 PM
From: ggersh  Respond to of 71454
 
Do they hedge leverage? -vbg-

bloomberg.com


Hedge Funds Expand Bets With Most Junk Since ’08: Credit Markets
By Lisa Abramowicz - Oct 7, 2013 11:16 AM CT

Hedge funds have amassed the greatest share of the $1.2 trillion U.S. junk- bond market since the credit crisis, raising concern bets with borrowed cash will accelerate losses when the Federal Reserve stops printing record amounts of money.

The funds, which typically use leverage to bolster returns, hold as much as 23 percent of outstanding dollar-denominated high-yield bonds, from as much as 18 percent last year and the highest since 2008, according to Barclays Plc. Credit hedge funds have boosted assets by 89 percent since 2008, outpacing the 66 percent growth of the junk market, data from Hedge Fund Research Inc. and Bank of America Merrill Lynch indexes show.

Funds that use leverage may threaten the financial system in a broader selloff, the U.S. Treasury Dept.’s Office of Financial Research wrote in a report gauging risks from investment firms that have ballooned after five years of central bank stimulus. Sophisticated investors including hedge funds were among the first to exit as the market started to fracture in 2008, when a collapse in U.S. property values triggered the bankruptcy of Lehman Brothers Holdings Inc., according to the Sept. 30 study.