Indeed, managers say that both retail and institutional investors remain interested in loans for three main reasons, in addition the obvious rate hedge the asset class affords.
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That means we will probably need to keep the capital gains (vs. ordinary income) rate for hedge fund managers and private equity people.
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Careful debt-management strategies that avoid short-term borrowing or the bunching of maturities and hedge against interest-rate or exchange-rate swings should come high on the agenda.
Anyone serving the euro-zone from Britain must either live with sterling's variability against the euro or hedge against exchange-rate fluctuations as far as they can.
Most attempts to hedge risk took that VIX rate of 40 into consideration if they had time.
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So how can individual investors hedge their portfolios against interest rate risk?
Banks will still be able to trade swaps to hedge risk and trade interest rate or foreign exchange swaps, but dealing in riskier swaps transactions must still be moved into affiliates.
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For speculators looking to place bets on the direction of interest rates (such as hedge funds), interest rate swaps are an ideal instrument.
Caxton Global Investment returned 0.7% net of fees in 2011, better than the average hedge fund but far from the rate of return Caxton investors have been accustomed to. 2012 has been no kinder to the firm, down -3.4% net of fees through July 2012.
They hedge their own exposure to interest-rate risk through derivative contracts.
Push the fast trading and high leverage to hedge funds which fail at a rather regular rate with little or not impact on the wider economy.
Local hedge funds report their performance relative to that rate.
Another reason demand for the long bond has been so voracious is that a lot of investment banks still use them to hedge their corporate-bond positions and interest-rate swaps (between fixed- and floating-rate obligations).
Whereas income is to some degree guaranteed, investment income is decidedly not guaranteed, and in the case of hedge funds they only pocket returns after hitting a rate of return demanded by their investors.
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Before we cut medical research, we should ask hedge fund managers to stop paying taxes at a lower rate than their secretaries.
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How can we ask a student to pay more for college before we ask hedge fund managers to stop paying taxes at a lower rate than their secretaries?
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This is a nexus of private-equity and hedge funds, money-market funds and auction-rate securities, non-banks such as GE Capital and new securities such as CDOs and credit-default swaps.
This demonstrates that countries with disproportionately large financial sectors, like the UK, have disproportionately small manufacturing sectors - because capital and talent tend to gravitate to the ostensibly big returns on offer in banks, hedge funds and so on, and because the exchange rate tends to rise to a level well above what's comfortable for exporters.
Rather, some half of hedge funds investing in Japan had net inflows and a core growth rate of 3.8%.
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Goldman's prime brokerage business, which assists and finances hedge fund stock purchases, has been racking up fees and interest rate spreads.
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In April, just after Britain increased its top rate of tax for high earners, large numbers of hedge funds and their agents started knocking on his door.
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The carried interest loophole that allows hedge fund managers and private equity investors like him a 15% tax rate on most of their earnings?
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Republicans thus far, by and large, have not supported the idea that we should eliminate the capacity for hedge fund managers to pay taxes on their income at a remarkably lower rate than average Americans.
Well, one of the big ones -- one of the big ones is the ability for hedge fund managers and others to pay tax on their income at a capital gains rate.
GlobeFunder allows borrowers to appeal for funding, determines an interest rate range, and then working with its partners--institutional investors and hedge funds--finds out whether there's enough interest in the loan to fund it.
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According to the Association of Corporate Treasurers, the vast majority of interest rate derivatives involve financial companies, such as banks, investment firms, insurers and hedge funds.
Shortly after Mr. Obama's inauguration, he and some congressional Democrats were pushing a plan to block managers of hedge funds and private-equity funds from paying a low 15% capital-gains tax rate on part of their income.
Hedge funds have come under heavy fire since George Soros forced sterling out of Europe's exchange-rate mechanism in 1992.
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Lawmakers want to significantly raise the tax rate Blackstone and other private equity firms pay, and many have called for stricter regulation of hedge fund activities.
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