Markets

1. Debt defaults hit record but expected to slow

   Default rates of low quality debt at European companies are expected to slow after reaching a peak at the end of September; the figures suggest that private equity firms may have reached their worst point in the credit crisis.

2. US and UK Government bonds are "a cocktail of risk"

   Banking analysts are becoming increasingly bearish on that once safe haven, government bonds.

3. Rasmussen has a point on alternative fund managers

   Poul Nyrup Rasmussen, leader of the Party of European Socialists and prime mover behind the proposed European Union Alternative Investment Fund Managers directive, has done little to endear himself to Europe’s financial services industry.

4. Alternative investors lose locust image

   Hedge funds based in Germany look set to receive a much-needed shot in the arm. A business-friendly government under Angela Merkel has been elected, demand from investors for absolute return products is rising and European regulation, notably in the form of Ucits III, is opening the market.

5. Investors face tough decisions over instant access to assets

   Last year was almost certainly a watershed for the hedge fund industry. Its widely predicted demise has not happened, but the imposition of gates limiting withdrawals, lock-ups and penalties angered investors to the extent that they demanded a series of changes.

6. Fund managers' risk appetite on the rise

   Risk appetite among traditional fund managers in Europe and Asia could be on the rise, according to a new poll of asset and wealth managers which shows a marked shift in asset allocation from six months ago.

7. Balanced funds buoyed by best returns in 34 years

   Fund managers running balanced mandates – multi-asset funds that invest across equities and fixed income – posted their best returns since 1975 in the three months to September 30, with an 18.4% rise; this performance comes on the back of strong rallies in the equities and fixed income markets.

8. The difficulty of winding down a hedge fund

   Many investors in hedge funds last year found it difficult to continue trading after the industry was hit with sudden illiquidity problems. Today, a hedge fund manager is struggling to liquidate itself after it unexpectedly found out it had more assets stuck in illiquid positions than it thought.

9. UK investors' billions push funds to record year

   UK retail investors have put a record £19bn (€21bn) into investment funds so far this year, according to the Investment Management Association, providing a boost to asset managers, which derive higher profits from retail assets than equivalent amounts of institutional money.

10. Analysts see Jupiter as candidate for float

    Expectations that UK fund manager Gartmore will pull off a £500m (€543m) stock market listing is fuelling speculation that rivals will follow suit.