Wednesday, January 7, 2009

White Paper by Pershing Confirms Importance of Counterparty Risk Management to Managers

HedgeFunds Review discusses in this latest article that the results of a survey published by Pershing shows us that hedge funds are viewing counterparty risks as a much more important issue than they have in the past. Over 50% of hedge funds surveyed mentioned that they were currently monitoring counterparty risks on a daily basis and of those almost 85% consider it an important business issue.

The economic crisis has put more pressure in the eyes of hedge funds managers to keep a close watch on counterparty risks. Even though more managers are starting to pay attention to counterparty risks, there is still much work to be done on creating a comprehensive automated system. Currently, most hedge funds rely on a manual process to keep track of the counterparty relationships. How is your hedge fund dealing with counterparty risks?

Hedgeweek has also written a similar article.

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