Deutsche Bank announced plans last week to reduce the size of its global prime brokerage business with a focus on the US, as well as US rates trading. This will translate into an improved Leverage Ratio and a stronger balance sheet. It also means that the number of reliable counterparties a hedge fund, cash investor or securities lender will turn to has gone down by one. Is any big bank needed to take their place or will a range of smaller counterparties, and even CCPs and Peer to Peer, be able to step in?
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