Risk: prime brokers ask hedge funds for more margin

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.

The full article is available at https://www.risk.net/investing/7861351/after-archegos-prime-brokers-put-the-squeeze-on-hedge-funds

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