Shorting is here to stay but execution techniques may be changing
Is shorting changing? Do funds use prime brokers to borrow the instrument itself or use derivatives to achieve the same ends?
Despite shorting bans and threatened regulatory changes, it is clear that hedge funds will still be using shorting as one of the mainstays of their strategies. A variety of views, however, has emerged over just how shorting will be achieved in the future.
Some believe there are still supplies of primary instruments while others are convinced synthetics will be the way of the future, not least because of lower prices and limited counterparty risks.
Clearly leverage is not as freely available and
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