International law firm Allen & Overy (A&O) has released a report considering the impact that new regulations are likely to have on the supply of credit in the global economy.  A&O’s general view is that the “deliberate and systematic tightening of regulation around the world is shrinking the size and scope of banking activity.”  A&O sees an opportunity for hedge funds and other investment funds, which remain for now either unregulated or “lightly” regulated, to provide credit to fill the gap.  This article focuses on the portions of the Report that address how those regulations may affect the ability of hedge funds to participate in the credit markets.