Wide of the mark?
Prime brokers often decline to offer financing for exotic or illiquid derivatives trades. The issue has been exacerbated by the current market turmoil, the ever- increasing complexity of deals and certain traders' valuation practices. By Joe Marsh
Prime brokers are known for having some of the best risk management expertise in the business. But they often shy away from providing margining for difficult-to-price derivatives products, say some hedge fund managers. There are two main reasons for this. First, over-the-counter (OTC) prices are necessarily subjective and require relevant expertise to evaluate, so in practice the manager may be at
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