Fund derivatives and financing

IGS Group's Michael Romanek observes a certain amount of give and take in negotiating the right fund financing

Much has changed in the fund financing/derivatives space in recent years. What began as a niche area in the late 1990s with little more than a handful of banks has grown into quite a substantial business with a present estimated nominal size of more than $700bn globally. As the hedge fund industry has grown and changed, so too the financing and derivatives on portfolios of hedge funds has evolved. In the late 1990s to early 2000s, there were five to seven primary providers in this area. Today