Hedge Funds Step Into Repo Markets

Some of the largest hedge funds of the industry are stepping into the repo markets, reports Tracy Alloway and Arash Massoudi for Financial Times. Since banks have largely vacated the repo market after their risky practices led to the financial collapse of giants like Lehman Brothers in 2008, the space was open for new competitors.

The repo markets less attractive due to stricter rules

As traditional lenders are finding the repo markets less attractive due to stricter rules, large hedge funds are stepping in to fill the void. FT reports that big and famous names like Louis Bacon’s Moore Capital...