Algebris Ramps Up Cash, Warning of Further Disruptions From War

Algebris Investments, a heavyweight in European bank debt, has increased cash levels in its credit funds to some of their highest levels ever, warning that markets are underplaying risks related to the war in the Middle East.

The asset manager now holds 15% cash in its €17 billion ($19.5 billion) Financial Credit Fund and 20% cash in its smaller Global Credit Opportunities Fund, portfolio managers said in an interview. Typically, cash would comprise about 10% of those funds. Algebris’ Financial Credit Fund is one of the world’s largest Additional Tier 1 bond-buying vehicles.