Highbridge’s Dubin Says Hedge Funds May Become ‘Shadow Banks’

Glenn Dubin, chief executive officer of Highbridge Capital Management, said hedge funds have an opportunity to provide credit to companies as banks are forced to scale back lending to meet tighter capital requirements.

“The most significant and scalable opportunity that we see is in private credit,” Dubin said today at the Bloomberg hedge fund conference hosted by Bloomberg Link. The “illiquidity premium is only going to go up as more and more companies go to the shadow banking system to get financed for their businesses.”

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To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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