Shadow banking universe gets more complex

Fri, 07 Mar 2008 06:59:54 -0500

We've heard a lot of denunciations recently of the shadow banking system, which seems to be raining problems on the brightly lit banking system. But here's a thought; one Pimco official suggests that sovereign wealth funds stand to make the shadows even darker, according to Hedge Fund Daily. Hedge funds, of course, are not the most transparent of vehicles. But SWF make them seem downright chatty about their business. You have to think they represent a huge pool of potential customers for purveyors of structured finance products. If certain forms of CDOs, for example, are to survive, they will need new buyers that do not answer to the public.

For more:
- here's the item on the Institutional Investor website

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