It pays for equity hedge funds to ask searching questions of their prime brokers' stock loan desks to differentiate between offerings.
This stands, prime brokers say, whether or not the hedge fund is borrowing physical stock for its short books or using synthetics such as swaps and contracts for difference.
The first, but by far not the only, point most hedge funds may see as important to consider in stock loan is the price they pay to borrow.
A prime broker will set prices for stock loan, as w
The week on Risk.net, December 2–8, 2017Receive this by email