The risks in credit are various and complex - from settlement risk to the differing risks of the strategies and instruments. How to manage them is crucial to the survival and success of any credit hedge fund player
Neil Wilson, EuroHedge
Where are the risks in the credit strategies sphere? Are they mainly to do with event risk and leverage? Or is it concentration of trades? Are there still big worries over settlement risk - or are we close to reaching a solution on that?
Guy Cornelius, UBS
Let's start with settlement risk. When the Fed tells you to do something, you do it. And, whilst the issues haven't been completely solved, I think the market now has significantly more confidence in its operating systems. I see some of these issues going away, and I see products coming out and helping a great deal.
In terms of risks in various strategies, there's a lot...