Single stock futures financing and the synthetic cash yield

Single Stock Futures

Using single stock futures (SSF) as a financing tool can help hedge funds clean up the present balance sheet problems caused by the sub-prime debacle. These problem transactions have decreased the operating leverage of any firm holding SIVs. As the cost of capital increases, there is a greater need for those firms that use OTC collateral transaction to clean up their balance sheets. Hedge funds looking for cash management vehicles to do this are posing the question of how to get a competitive sh