Basel bonanza a boon for cold hard cash
While hedge funds may be used to holdings in cash management funds for investor redemptions, Basel II has given banks a greater incentive, to allow their use as collateral as well, Solomon Teague reports
Hedge funds have been showing an increasing interest in cash products, according to Jonathan Currie, product specialist at Barclays Global Investors (BGI), looking after cash products.
They have not been alone. In 1998, the cash market was around $1bn, in Europe. Now, it has grown to more than $70bn, compared to $130bn in the United States. There has been a small level of penetration in Asia too, although it is still in its infancy compared to the two Western continents. The same is true of Latin
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