U.S. News

Moody's Sees Potential for Major Hedge Fund Collapse: DJ


Moody's Investors Service analysts said the credit crunch rattling global financial markets could cause the collapse of a major hedge fund, Dow Jones Newswires reported on Thursday.

As investors try to dump illiquid investments, hedge funds that are unable to exit their positions could run into trouble, resulting in the "failure and disorderly liquidation of a hedge fund of sufficient size to disrupt markets," Moody's vice chairman Chris Mahoney said during a conference call, according to Dow Jones.