Prime brokers expanding but credit funds 'shoved out the door'

Bank overhaul of prime brokerage hurting some more than others

sunrise over earth
Prime brokers and hedge funds are adapting to a new world

In the summer of last year, banks were warning a jump in financing rates was inevitable for certain hedge funds, in order to comply with leverage and liquidity ratios in Basel III. Since then, many have made a concerted effort to overhaul their prime brokerage units, turning away clients and lifting rates for some.

Hedge funds have been asked if they can change the composition of their portfolios to make their prime financing less balance-sheet-intensive. Small hedge funds and credit hedge funds

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