LAS VEGAS (MarketWatch) — A collapse of the banking system, the demise of the U.S. dollar as the reserve currency, another oil shock, a new round of junk-bond defaults and a meltdown in Japan’s bond market were among the doomsday scenarios explored by hedge-fund managers at a conference in Las Vegas Thursday.
Since the 2008 financial crisis, many hedge funds have added trades that could protect against losses from big, unexpected events — now known as black swans, a term coined by investor Nassim Taleb.
“These black swans are interbreeding,” said Robert Sinnott, chief executive of hedge fund and private-equity firm Kayne Anderson Capital Advisors, during the SkyBridge Alternatives Conference.
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