http://www.wsj.com/articles/hedge-funds-gear-up-for-another-big-short-1437504910http://www.zerohedge.com/news/2015-07-21/wall-street-prepares-reap-billions-another-main-street-wipe-outBasically, worries about high yield, emerging market bonds and other instruments (including some alternative funds) getting hurt if the market turns and there isn't liquidity for some of these assets. Oaktree and others are raising money for funds to take advantage.
" But many on Wall Street worry the junk bonds, bank loans and esoteric investments held by some of those funds will be extremely hard to sell if the market turns, leaving prices pummeled in a rush for the exits.
Concerns about such scenarios have been escalating for some time. Now, investment firms such as Leon Black’s Apollo Global Management LLC and Oaktree Capital Management LP are laying the groundwork to cash in if they come to pass.
Apollo has been raising money from wealthy investors and portfolio managers for a hedge fund that snaps up insurance-like contracts called credit-default swaps that benefit if the junk bonds fall. In marketing materials reviewed by The Wall Street Journal, Apollo predicted: "ETFs and similar vehicles increase ease of access to the high yield market, leading to the potential for a quick ‘hot money’ exit."
