After Archegos, prime brokers put the squeeze on hedge funds

Hedge funds are told they will need to pay more margin, more frequently, to back their trades

Not long after Archegos Capital Management collapsed, the phones started ringing.

Prepare to stump up more margin for single-name equity swaps, a UK hedge fund was told by its prime brokers at Bank of America and Morgan Stanley.

JP Morgan’s prime brokerage division warned hedge fund clients they could be required to post additional variation margin if their swap positions lost value intraday.

A US hedge fund manager was surprised when bank risk managers he’d never spoken to before called “a

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