RECHERCHE ET PUBLICATIONS

Disorderly exits from crowded trades? - On the systemic risks of hedge funds, A reply to the ECB's statement on hedge funds

An article in the June 2006 edition of the European Central Bank's Financial Stability Review (FSR) claims that hedge fund activities pose considerable risk to the financial system.

We disagree with this conclusion, which is based on mere speculation. This document outlines the fallacies in the reasoning of the FSR article and makes some propositions on how to assess the welfare impacts of hedge funds. In particular, we argue that it would be worthwhile for financial regulators to work towards obtaining data on hedge fund leverage and counterparty credit risk. Such data would allow for a reliable assessment of the question of systemic risk. In addition, we argue that besides evaluating potential systemic risk, it should be recognised that hedge funds play an important role as providers of liquidity and diversification.

Type : Position paper
Date : le 05/06/2006
Pôle de recherche Finance

A voir également

L'EDHEC dans le Top 10 mondial du classement FT Executive Education 2022
Actualités
- 23-05-2022
Sur le marché international de la formation continue, le Financial Times confirme l'...
L’EDHEC s’associe à VIVATECH 2022 et offre 400 places aux étudiants EDHEC
Actualités
- 20-05-2022
L’EDHEC est à nouveau partenaire de l’événement tech incontournable de l’année, Viva...
L’EDHEC, 4e grande école en France selon le Palmarès du Parisien 2022
Actualités
- 19-05-2022
Comme chaque année, Le Parisien s’interroge : ‘Quelles sont les meilleures grandes...
(Invitation) Inauguration de la Chaire Management in Innovative Health - 30 mai 2022, Paris
Actualités
- 17-05-2022
Emmanuel Métais, Directeur général EDHEC Business School et Christophe Durand, General...