Prime brokers expanding but credit funds 'shoved out the door'

A year ago, banks warned of the threat Basel III posed to hedge fund strategies. After an overhaul of prime brokers, many say they now want to expand prime financing – but only to certain strategies

sunrise over earth
Prime brokers and hedge funds are adapting to a new world

In the summer of last year, banks were warning a jump in financing rates was inevitable for certain hedge funds, in order to comply with leverage and liquidity ratios in Basel III. Since then, many have made a concerted effort to overhaul their prime brokerage units, turning away clients and lifting rates for some.

Hedge funds have been asked if they can change the composition of their portfolios to make their prime financing less balance-sheet-intensive. Small hedge funds and credit hedge funds

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here