Credit funds were up by a mere 0.2% in June, according to Credit Suisse.
Though the numbers are impossible to nail down, managers describe the dollars involved as in the billions from a combination of loan-only and multi-strategy credit funds.
In 2006 Reijtenbagh met Joshua Blaine, a director of a Credit Suisse funds division that manages private equity stakes.
The previously undisclosed debt meant the Credit Suisse funds no longer had an exclusive claim on their loan collateral.
Regulators also hint that it might eventually be necessary to supervise credit hedge funds, now monitored via their brokers.
Reijtenbagh claims Credit Suisse exerted control over which funds it invested in and blames Credit Suisse for having Plaza invest in "poorly performing funds, " according to documents filed in bankruptcy court.
Corporate titans, including those with stellar ratings, are drawing on revolving bank-credit lines to secure rainy day funds until the credit markets calm down.
The second is that of course the credit ratings of the funds are only as good as the credit ratings of the countries which have pledged to stand behind any losses.
The ugly acronym covers a swarm of different institutions including community credit unions, loan funds and microfinance funds whose goal is to provide credit and capital to poor people who lack access to conventional financial services, such as banks.
However, taking away credit from hedge funds means they have to sell assets.
Redemption battles between hedge funds and their investors have been a common feature of the credit crisis as hedge funds blocked cash outflows in the name of preserving value of the underlying assets.
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Papastavrou, who once worked for Bank of America and Deutsche Bank before founding Aris, broke ranks with his fellow managers of funds of hedge funds following the credit crisis and filed eight lawsuits against different hedge funds that refused to redeem his money.
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By guaranteeing the funds France and other countries depress their own credit ratings which makes the funds themselves less effective.
However, the Target 2 system is a processing platform that funds outstanding credit lines.
Its rules are wide-ranging, embracing not only shares but also pension plans, mutual funds and credit-card balances.
Then, Mr Brown abolished the dividend tax credit enjoyed by pension funds.
But an embryonic plan to create a super-regulator for consumer products, such as mortgages, credit cards and mutual funds, is already encountering stiff opposition.
On a larger scale, Low Income Housing Tax Credit (LIHTC) funds like this one could potentially help the economy by spurring real estate development and investment.
By mid-December, what were termed the White Papers were being delivered to policymakers, looking into subjects including banking, credit ratings, hedge funds and regulators, as well as bailout efforts.
Business owners traditionally have turned to lines of credit, loans or credit cards for the funds they need to get through a payroll cycle, or to pay landlords and suppliers.
It would create new small business lending funds to unlock credit for entrepreneurs.
Several such funds run by Credit Suisse's Watt are listed in New York and are subject to U.S. disclosure rules.
And if this continues then we end up with only Germany with a good enough credit rating to support the funds.
"Other financial tools such as credit guarantee or debt refinancing funds are needed to assist companies to operate, " suggests Dr Doanh.
Funds run by Credit Suisse and Morgan Stanley were also hit.
With Reijtenbagh the funds managed by Credit Suisse could lock in annual returns ranging from Libor plus 1.5% for six years to 15% of part of the capital provided for eight years.
If that happens, hedge funds addicted to the credit market will be in deep trouble.
Prior to the credit crunch, private-equity funds tried to shake up the industry.
Already the FDIC's available funds, including untapped credit lines from the Treasury, are equivalent to just 1.5% of total commercial-bank deposits.
Money funds, with robust credit departments that do not simply rely on ratings, are better placed than corporate treasurers to provide this.
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