Hedge funds focus on prime broker counterparty risks and financing

Hedge funds are putting an emphasis on counterparty risk and access to financing when selecting a prime broker. Kris Devasabai reports

dartboard

Having the backing of at least one strong and committed prime broker is crucial to the success of a hedge fund business. For hedge fund managers that overlooked the significance of having the right counterparties on board, the Lehman bankruptcy and its aftermath provided a sharp reminder of the importance of the prime broker relationship.

Following the panic and confusion of the financial crisis, hedge funds are investing real time and energy into prime broker selection and putting an emphasis on

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