Some hedge funds are financing trades for other hedge funds

After the Archegos collapse, hedge funds are competing to borrow money from a dwindling number of banks

US dollars reflected

Seldom have so few lent money to so many. The number of large banks offering prime brokerage to hedge funds has shrunk, partly owing to the bumper losses suffered by a string of banks after the collapse of family office Archegos in March.

Meanwhile, the crowd of hedge funds clamouring for prime services has grown. The total number of firms is up by a third in the past seven years, and hedge fund portfolio holdings reached $4 trillion this year.

These shifts have created a squeeze on prime

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