New AIMA paper study entitled,“Hedge Funds Step Up Financing of the Economy” explains the role of non-bank finance, which involves funds that provide direct lending and operate predominately in the US. The article explains:
“Outside of the US, bank deleveraging in Europe is creating an opportunity for institutional and private investors to expand direct lending to a range of sectors, and there are plenty of new approaches and structures emerging. Increased activity from capital markets as opposed to lending through traditional bank lending channels has produced material benefits. Included among these are increased market liquidity, a
greater diversity of funding sources and a more efficient allocation of risk among investors,” (AIMA, Hedge Funds Step Up Financing of the Economy)
Read more here and at www.aima.org.
