Hedge Funds

With a semblance of relative calm back in the markets, now is a great opportunity for hedge funds to reconsider how they manage margin which ultimately ties into how a…

The changing role of the hedge fund Treasury manager

May 20, 2020

Hedge Funds, Investments, Repo

hedge funds, Repo, topstory, Treasury

The COVID-19 epidemic is showing the importance of hedge fund Treasury departments including portfolio finance, cash and collateral management. The complexity of the task is emphasized by working from disaster…

Buy-side scrutinizes market neutral performance under stress (Premium)

April 22, 2020

Anna Reitman

Hedge Funds, Technology

asset managers, coronavirus, CTAs, liquid alternatives, quants, risk management, Short selling, topstory

In mid-March, UK financial advisory bfinance’s managing director, Toby Goodworth, wrote that “it’s now time for ‘liquid alternatives’ to stand up and be counted“, noting that markets would hope to…

Coronapocalypse: volatility makes a comeback, are markets ready? (Premium)

March 18, 2020

Anna Reitman

Derivatives, Hedge Funds, Technology

Burton-Taylor, CBOE, coronavirus, hedge funds, Hercules Investments, topstory, VIX, volatility

There’s only one thing that’s certain about the markets: volatility is back. We talk to a hedge fund trading it, and dig into some of the most recent stats, strategies…

Finadium: Leveraged Funds and Prime Brokerage Relationships: Evidence from a New Database

February 11, 2020

Data, hedge funds, prime brokers, topstory

Finadium has created and analyzed a new database of Form ADV filings from the US Securities and Exchange Commission (SEC). The data, compiled from registered funds listing a prime brokerage…

The BNPP/Deutsche Bank combined prime broker: client relationships and market ranking (Premium)

February 11, 2020

BNPP, Deutsche Bank, hedge funds, prime brokers, topstory

An important change coming up in the structure of the prime brokerage industry is BNP Paribas’s acquisition of Deutsche Bank’s equity finance division. In a report released today, we analyze…

Webinar replay: Client training on Finadium’s securities lending, repo and hedge fund databases (Premium)

February 5, 2020

mstan

Hedge Funds, Prime Brokerage, Repo, Securities Lending

Data, hedge funds, mutual funds, prime brokers, Repo, Securities Lending, topstory

Finadium clients can access the webinar replay here. Continue reading

Client Training: Finadium’s securities lending, repo and hedge fund databases

January 20, 2020

Finadium Event, Hedge Funds, Prime Brokerage, Repo, Securities Lending

Data, leverage funds, Prime Brokerage, Repo, Securities Lending, topstory

Finadium will present an online training session for our clients: Finadium’s securities lending, repo and hedge fund databases will run on Wednesday February 5, 2020 at 10AM EST / 3PM GMT…

The impact of direct agency lending programs for asset owners, hedge funds and market structure (Premium)

November 19, 2019

Hedge Funds, Securities Lending

agency lending, Beneficial Owners, Direct Agency Lending, enhanced custody, hedge funds, Securities Lending, State Street, topstory

State Street got warranted attention with its October 10, 2019 announcement that it had launched Direct Access Lending, a program to lend beneficial owner assets to hedge funds, with indemnification…

Finadium database of hedge fund/prime brokerage relationships now live

October 21, 2019

hedge funds, prime brokers, topstory

Finadium has created a database of US hedge fund/prime brokerage relationships based on SEC ADV filings. Following a beta test, the live database is now available to Finadium clients as…

The Long and Short of US Prime Brokerage Pricing in 2019

October 10, 2019

Robert Sackett

Hedge Funds, Prime Brokerage, Securities Lending, US

hedge funds, Prime Brokerage, stock loan, topstory, US

Pricing in the current Prime Brokerage market remains competitive due to various factors including excess liquidity, new entrants, and a renewed focus by institutions to attract and retain stable accrual…

Finadium launches database on hedge fund/prime broker relationships; invites beta testers for online access

September 4, 2019

hedge funds, Prime Brokerage, prime brokers, topstory

Finadium has created a database of US hedge fund/prime brokerage relationships based on SEC ADV filings. The database will be available to Finadium clients as part of the standard research…

Is there a culture gap in hedge funds building treasury divisions? (Premium)

August 1, 2019

Cash management, Hedge Funds, Repo

cash management, HazelTree, hedge funds, Repo, Securities Lending, topstory, Treasury

We’ve been wondering for a while why hedge fund treasury divisions seem to thrive at some firms and may be dismissed at others, so we asked some hedge funds about…

Hedge fund volume on FICC sponsored repo is spiking – here are the numbers (Premium)

July 29, 2019

CCP, cleared repo, Hedge Funds, Investments, Repo

dealers, hedge funds, money funds, sponsored repo, topstory

FICC told us last week that average daily volumes on sponsored repo hit $376 billion at the end of Q2 2019, up from $230 billion at the end of Q4…

One idea for rebuilding the specials market in securities finance (Premium)

July 25, 2019

Hedge Funds, Prime Brokerage, Securities Lending

Agent Lenders, hedge funds, prime brokers, Securities Lending, topstory

Prime brokerage and agency lending revenues in Q2 2019 are both down significantly from the prior year. Part of the reason is Federal Reserve risk-off rate decisions that are propelling…

Key takeaways from Hazeltree’s 3rd annual buy-side treasury and portfolio finance event (Premium)

July 15, 2019

Hedge Funds, Repo

HazelTree, hedge funds, topstory, treasurers, Treasury

We attended Hazeltree’s June 4, 2019 event, “The Future of Treasury and Portfolio Finance Management and their Differentiated Benefit,” co-sponsored by Federated. The first panel featured five hedge fund treasury…

Beyond Meat (BYND) highlights dysfunction in securities finance pricing (Premium)

June 12, 2019

Hedge Funds, Investments, Securities Lending

BYND, hedge funds, Securities Lending, topstory

Supply and demand are fair play, but securities lending rates as high as 650% 700% for Beyond Meat (BYND) securities are a trade that only a fool – or a trader…

Thursday News Roundup: analytics for hedge funds, the rumor mill, seclending pricing and more (Premium)

June 6, 2019

Artificial Intelligence, Cryptocurrency, Hedge Funds, Securities Lending, SFTR

artificial intelligence, hedge funds, market data, securities lending pricing, SFTR, topstory, Trade repositories, Universal Settlement Coin

The collateralized trading markets are going strong as the summer gears up. Here’s our news roundup for the end of the week. Continue reading

Smaller clients, new opportunities in securities finance should be pursued

May 1, 2019

Hedge Funds, Investments, Securities Lending

asset management, FISL, hedge funds, securities finance, topstory

Given the concentration of assets on the buy-side, landing a big fish means more now than ever for banks and vendors. Bringing on one big new client can have the…

Differentiate your technology platform

April 28, 2019

Ben Simmers

Hedge Funds, Prime Brokerage, Technology

hedge funds, prime brokers, SS&C Advent Syncova, Syncova, topstory, Treasury platforms

The idea of Treasury platforms for hedge funds and other asset managers has taken hold lately because there are financial and organizational benefits from having one central point of control.…

An argument that more PB internalization will lead to more direct securities lending (Premium)

March 5, 2019

CCP, Hedge Funds, Securities Lending

Beneficial Owners, CCPs, direct lending, hedge funds, Securities Lending, topstory

If prime brokers continue to internalize more effectively, plus expand further into synthetics, there is an argument to be made that more beneficial owners will actively consider direct securities lending…

How to grow in the prime brokerage market for 2019 (Premium)

February 26, 2019

Hedge Funds, Prime Brokerage, Securities Lending

automation, hedge funds, Prime Brokerage, topstory

We’ve been hearing some trends from prime brokers about how to grow their franchises in spite of weak hedge funds returns in 2018 and no end to the concentration in…

Hedge fund closures down in 2018, assets are up but performance is muted

October 30, 2018

Hedge Funds

Barclay Hedge, eVestment, hedge funds, HFR, securities finance, topstory

The hedge fund industry is seeing an uptick in assets and fewer funds closed in 2018 than 2017, but only a portion of those funds posted positive returns. As hedge…

Manmohan Singh’s latest, “Leverage – A Broader View,” shows that build up in the banking system from off-balance sheet trades is huge

Manmohan Singh and Zohair Alam of the IMF have written an important white paper “Leverage—A Broader View” (March 19 2018, IMF Working Paper WP/18/62) that looks at off-balance sheet leverage.…

Best practices for buy-side securities lending at FISL NYC and London – not just a good idea but important for revenues and risk management

March 12, 2018

Hedge Funds, Investments, Pensions, Securities Lending

best practices, Finadium, FISL, Securities Lending

Securities lending has strong legitimacy in capital markets as a revenue generating activity for clients, and for passive funds can make the difference between a top ranking and falling near…

Top commercial transactions of the last week (Premium)

March 6, 2018

Blockchain, Custodians, Hedge Funds, Securities Lending, Technology

blockchain, Custodians, Custody, hedge funds, Securities Lending, topstory

Custodians, asset managers, hedge funds and vendors all made some notable trades in the middle of Q1. We offer an analysis of three important deals for the industry including who…

Securities finance as an alpha generator on the buy-side? A FISL NYC and London afternoon session

January 11, 2018

FISL, Hedge Funds, Investments, Repo, Securities Lending

Alpha generation, asset managers, Finadium, FISL, hedge funds, securities finance, topstory

Can hedge funds and asset managers generate meaningful alpha for their portfolios using securities finance? This is an important question for both the funds themselves and the professionals that work…

Bank of England on hedge fund and PB risk: better than it used to be but issues remain

January 4, 2018

Jonathan Cooper

Bank of England, Credit Exposure, Europe, Hedge Funds, Investments, Prime Brokerage, Pro-cyclicality, Risk Management, Systemic Risk

Bank of England, hedge funds, Initial Margin, prime brokers, Procyclicality, topstory

A recent publication from the Bank of England shows that hedge fund systemic risk is generally lower than it used to be; that’s a good thing for the markets. Hedge…

The plot thickens: the first amended complaint on US banks alleging collusion in securities lending shows the fruits of discovery (Premium)

December 19, 2017

Hedge Funds, Investments, Pensions, Prime Brokerage, Securities Lending

Equilend, lawsuit, Securities Lending, topstory

We’ve been tracking the complaint against US prime brokers and EquiLend by what are now four pensions and a hedge fund. The latest amendment shows new depth to the argument,…

Finadium Report: Analysis from the US Rates & Repo 2017 Conference

December 5, 2017

Hedge Funds, Investments, Repo, US

events, Finadium, FISL, hedge funds, Rates & Repo, Repo, topstory, US

Finadium has documented the questions and feedback from our November 1, 2017 Rates & Repo event in New York as a research report. The event drew 145 attendees, with 34%…

Our analysis of IOSCO’s latest hedge fund survey (Premium)

November 27, 2017

Hedge Funds, IOSCO, Liquidity Management

hedge funds, IOSCO, Leverage, topstory

IOSCO released their 2016 data analysis of hedge fund assets, leverage and liquidity. While this document always feels a bit dated compared to current markets, it also has some kernels…

Recap of Finadium’s Rates & Repo Conference 2017 in New York

November 6, 2017

Hedge Funds, Investments, Money Market Funds, Repo, US

Finadium, hedge funds, Rates & Repo, Repo, topstory, US

We are pleased to report that our first Rates & Repo Conference, held last week in New York, was by all accounts a great success. We had 162 registrations by…

There are impacts from the US securities lending lawsuit no matter what happens (Premium)

October 17, 2017

Hedge Funds, Prime Brokerage, Securities Lending

hedge funds, lawsuit, Prime Brokerage, Securities Lending, topstory

The lawsuit against six banks and EquiLend, with some big pensions signed on as plaintiffs, already has likely outcomes and plausible winners regardless of any judgement. Some market participants and…

Does the lawsuit against US banks alleging collusion in securities lending make sense? (Premium)

August 21, 2017

Hedge Funds, Investments, Pensions, Securities Lending

Cohen Milstein, lawsuit, Securities Lending, topstory

On August 17, 2017, law firm Cohen Milstein Sellers & Toll filed a Federal class action lawsuit against six US banks saying that they conspired for years to keep new…

Are the buy side and sell side on the same page about the direction of prime brokerage?

July 3, 2017

Hedge Funds, Investments, Liquidity Management, Prime Brokerage, US

BNY Mellon, buy-side, Finadium, financing, hedge funds, Liquidity, Prime Brokerage, topstory

BNY Mellon released the results of a buy-side survey on liquidity and financing on June 26th. How closely do the concerns and attitudes of investors towards their liquidity and financing…

How important is balance sheet management in prime brokerage today? Look at compensation packages (Premium)

June 27, 2017

Basel III, Dodd-Frank, Hedge Funds, Prime Brokerage, Regulatory, US

bank capital, Leverage, Prime Brokerage, Regulatory, topstory

In our survey of US prime brokers released today, we looked at the relationship between balance sheet optimization with hedge fund clients and employee compensation. We followed the thinking that…

The Five Cs of Bank and Client Success in Securities Finance

June 15, 2017

mstan

Basel III, Cash management, CCP, Collateral Management, Derivatives, Hedge Funds, Investments, Repo

ALM, CCPs, collateral, Natixis, Repo, topstory

Today’s global investment banking market continues to be shaped by the need for innovation and synergies driven by an evolving regulatory landscape. We have identified the Five Cs for success…

Slides from our webinar on Securities Finance Market Structure (Premium)

June 13, 2017

Basel III, Collateral Management, Hedge Funds, Investments, Pensions, Prime Brokerage, Repo, Securities Lending, Technology

Finadium, Regulation, Repo, securities finance, Securities Lending, technology, topstory

We delivered a webinar, Securities Finance Market Structure Trends, on June 13, 2017. Finadium clients can download the presentation below. Continue reading

Are hedge funds really that risky as counterparties in collateralized trading?

June 1, 2017

Collateral Management, Custodians, Hedge Funds, Prime Brokerage, Repo, Securities Lending, Technology

brokers, buy-side, collateral management, credit risk, Custodians, hedge funds, P2P, peer to peer, topstory

As Peer to Peer markets make their play, credit departments at buy-side firms around the world are looking askance at the very idea of a collateralized trade directly with a…

Next Steps for Hedge Funds in Cost Management

May 22, 2017

mstan

Basel III, Derivatives, Hedge Funds, Investments, Repo, Securities Lending

hedge funds, Prime Brokerage, Societe Generale, topstory

These are legitimately complex times for hedge funds. Between macropolitical turmoil, negotiating fees and managing their daily activities, hedge fund managers must pay attention to a wide range of factors…

What hedge funds think about Direct/Peer to Peer platforms (Premium)

April 13, 2017

Hedge Funds, Repo, Securities Lending

direct, FISL NYC, hedge funds, peer to peer, topstory

We heard from several hedge funds over the last week on Direct and Peer to Peer platforms. While these platforms are interesting, there are some significant issues that must be…

Would brokers move back into prop trading without Dodd-Frank? (Premium)

January 25, 2017

Dodd-Frank, Hedge Funds, Regulatory, Securities Lending, US

bank capital, brokers, Proprietary Trading, topstory, US, Volcker Rule

If changes to the Volcker Rule come to pass, what is the likelihood that brokers will dust off the prop desks and draw back trading talent that fled to the…

SS&C's acquisition history should give pause to banks in alternatives management and fund technology

December 19, 2016

Hedge Funds, Prime Brokerage, Technology

Fund Administration, SS&C, technology, topstory

SS&C’s acquisition of Conifer Securities, announced last week, shows again the firm’s strategic growth path in the alternatives, fund administration and financial technology sector. The collection of Conifer’s 200 clients…

Prime brokers, credit intermediation and new trading networks in securities finance (Premium)

November 8, 2016

Hedge Funds, Investments, Prime Brokerage, Repo, Securities Lending

Agency Prime Brokerage, DBV-X, direct, Elixium, peer to peer, topstory

Back in April 2016 we laid out our ideas for Agency Prime Brokerage, a business model where prime brokers provide a range of operational functions in financing without credit intermediation.…

Falling leverage and low volatility threaten Europe’s hedge funds

October 10, 2016

Paul Amery

Europe, Hedge Funds, Investments, Prime Brokerage

BIS, fees, hedge funds, NSFR, prime brokers, topstory

For European hedge funds, already under pressure for below-target returns, low volatility and falling leverage threaten to add up to a toxic mix. Regulators may be happy with less leverage…

The technical details on how direct/peer-to-peer borrowing increases US customer trading leverage (Premium)

September 28, 2016

Cash management, Collateral Management, Hedge Funds, Prime Brokerage, Securities Lending, US

arranged financing, direct, Enhanced leverage, peer to peer, Securities Lending, topstory, US

In this article we look at the benefits a US trading customer gains by borrowing to cover their own short positions. Like Fully Paid Lending, direct borrowing and lending is…

Finadium: Update on Direct and Peer to Peer Transactions in Securities Lending and Repo

September 12, 2016

Collateral Management, Hedge Funds, Repo, Securities Lending

direct, Finadium, P2P, peer to peer, topstory

This Finadium Executive Briefing presents the opinions of asset managers on lending to hedge funds and their peer institutions, and provides commentary on the offerings of three large agent lenders…

Redeploying brokerage infrastructure for Direct securities finance transactions (Premium)

July 11, 2016

Hedge Funds, Market infrastructure, Operations, Prime Brokerage, Securities Lending, Technology, US

arranged financing, Direct Borrowing and Lending, Enhanced leverage, hedge funds, Prime Brokerage, topstory

The latest in a long line of once unthinkable changes in securities finance is the concept of direct lending and borrowing between beneficial owners and hedge funds. US brokers have…

Finadium for Hedge Funds: Tools and Information for Alternative Investors

June 21, 2016

alternative asset managers, alternative UCITS, hedge funds, liquid alternatives, topstory

Derivatives, Hedge Funds, Prime Brokerage, Regulatory, Repo, Securities Lending