Most notably, hedge funds and private equity funds have begun to play an important role in the global financial system. Such funds' strong demand for investment opportunities appears to have been the driving force in creating a variety of investment products including real estate financing and M&A activity.
Due to such development of financial transactions and an increasing prominence of various investment funds, risk money with a diverse risk appetite is racing around the global financial markets. The current subprime mortgage problems clearly indicate that this is an era where the risks in a certain sector of a country will be distributed and be held widely by financial institutions and investors worldwide.