US prime brokers are now closely evaluating funds as securities lenders – beneficial owners – to ensure that their legal agreements offer proper protection in the event of a counterparty default. While it would be very unusual for a large beneficial owner to default, there appears to be a balance sheet implication in the agreements as they stand for borrowers.
This content requires a Finadium subscription. Articles with an unlocked symbol can be accessed with free registration. Log in or create a free account by signing up here..
