Onwards and upwards for sec lending
29 May 2014 London
Image: Shutterstock
Securities lending deal activity picked up substantially during April, especially in the pharmaceuticals sector, according to research by Deutsche Bank.
Despite a difficult month in the equities market, offers for AstraZeneca and Meda were of particular notice to the wider market.
Merger activity was complemented by strong convertible issuance throughout the month. Recent tech-related IPO names saw strong short interest in April including Twitter, Japan Display and Hitachi Maxell.
It was a challenging month for hedge funds with the median fund flat (0 percent) over the period.
There was an unusually wide dispersion of returns among equity long/short strategies in particular. Credit (+0.81 percent), CTA/managed futures (+0.51 percent) and multi-strategy funds (+0.42 percent) led global gains in April.
Regionally, credit strategies continue to perform well gaining 4.32 percent in the US and 3.10 percent in Europe year-to-date.
In the US, the Securities and Exchange Commission (SEC) announced its intention to examine around 25 funds over the course of six months to review whether certain alternative mutual funds that follow riskier hedge-fund strategies are complying with leverage and liquidity rules.
The SEC also issued a risk alert on cyber security and plans to examine more than 50 investment advisers and broker-dealers regarding their level of preparedness.
In the UK, the Financial Conduct Authority published survey results on the composition of the UK hedge fund industry, finding that the UK’s top 20 firms control more than 80 percent of assets under management.
Despite a difficult month in the equities market, offers for AstraZeneca and Meda were of particular notice to the wider market.
Merger activity was complemented by strong convertible issuance throughout the month. Recent tech-related IPO names saw strong short interest in April including Twitter, Japan Display and Hitachi Maxell.
It was a challenging month for hedge funds with the median fund flat (0 percent) over the period.
There was an unusually wide dispersion of returns among equity long/short strategies in particular. Credit (+0.81 percent), CTA/managed futures (+0.51 percent) and multi-strategy funds (+0.42 percent) led global gains in April.
Regionally, credit strategies continue to perform well gaining 4.32 percent in the US and 3.10 percent in Europe year-to-date.
In the US, the Securities and Exchange Commission (SEC) announced its intention to examine around 25 funds over the course of six months to review whether certain alternative mutual funds that follow riskier hedge-fund strategies are complying with leverage and liquidity rules.
The SEC also issued a risk alert on cyber security and plans to examine more than 50 investment advisers and broker-dealers regarding their level of preparedness.
In the UK, the Financial Conduct Authority published survey results on the composition of the UK hedge fund industry, finding that the UK’s top 20 firms control more than 80 percent of assets under management.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
