# kaal:claim:1806252-030

**Claim.** Because some hedge fund trading strategies depend on the immediate availability of capital and will not work without sufficient lines of credit, banks may retain enough influence over hedge funds even where funds use multiple lenders.

**Type.** mechanism  **Support.** argued

**Holds when.**

- fund uses dynamic trading strategies requiring additional capital on short notice

**Source quote.**

> Without sufficient lines of credit to supply required additional capital, these trading strategies may not work. Perhaps banks will have enough influence over hedge funds even if hedge funds have multiple lending relationships.

**From.** Kaal, *Hedge Fund Regulation Via Basel III* (2011), V.4 Hedge Fund Regulation via Basel III, page 73

**Cite as.** Kaal, Hedge Fund Regulation Via Basel III (2011). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1806252

**Verify.** sha256 of source PDF `3343ebfe05a925c3d1a75625c4b351ccff515c50819a48d155804daacf01429d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202011%20-%20Hedge%20Fund%20Regulation%20Via%20Basel%20III.pdf

**Topics.** systemic-risk

**Keywords.** bank-influence, credit-lines, dynamic-trading, indirect-regulation

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/2998097-008

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.