Report: Leveraged Assets Will Grow 74% Over Next 4 Years

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

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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.

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