Hedge funds face higher prime broker charges under Basel III

Funds urged to build treasury savvy as prime brokers retrench

coins-rising-costs

For months now, prime brokers have been warning that tougher rules on bank capital and liquidity will force them to charge more for financing and cut the amount of leverage they provide to clients. Few hedge funds are listening though, and it is not hard to see why. Despite the dire predictions, the cost of financing has barely budged for most of them.

“Lately, we’ve heard a lot of ‘sky is falling’ talk from prime brokers, but when you really get down to it and ask them if they want you to move

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

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