Managing The Risk Of Prime Broker Default: A Guide For Hedge Funds

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Managing The Risk Of Prime Broker Default: A Guide For Hedge Funds

The collapse of Bear Sterns, Lehman Brothers and Merrill

Lynch globally and the collapse of Opes within the Asia Pacific

Region have brought to the forefront the risk of prime broker

default. In the aftermath of these collapses, what steps can hedge

funds take to manage the risk of this important counterparty

relationship?

The past months have seen an increased level of discussion of

prime broking relationships, both from the perspective of hedge

fund managers seeking to minimize fund losses in the event of the

default of their prime broker and from the perspec...

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