Asset-backed lending (ABL) as a strategy for hedge funds has fared better than some other strategies over the past few months. It has been growing in popularity as credit market upheaval has forced banks to tighten lending, giving hedge funds a new opportunity.
Corporates are turning to hedge funds for financial support. They are seen as efficient vehicles to originate and service short-term loans.
For ABL most hedge funds use cash reserves and issue loans on collateralised assets to small to medi