Vodia Group released a new report covering the prime brokerage industry, the changes brought by traditional asset managers and the renewed industry concerns of credit and liquidity risk. Highlights from the report include:
* Investments using leverage will increase from $2.65 trillion today to $4.58 trillion in 2012, an increase of 73%. This figure includes hedge funds, mutual funds and unregistered leveraged investment vehicles, and considers double counting from Funds of Funds and other investment pools.
* 86% of traditional asset managers will have a 130/30 or similar short extension strategy in the next year, and nearly all managers will operate some sort of leveraged investment strategy.
Vodia Group, a research and consulting firm focused on financial services and financial technology, produces research reports on institutional investors, prime brokerage and related topics.