Through the looking glass

Wed Apr 30, 2008

After years of rampant liquidity, the financial landscape has changed into a surreal world. Financial institutions can no longer lend at terms of the past, and hedge funds are likewise deleveraging. They are also looking to increase their number of prime brokers to protect themselves.

Prime brokerage faces a new reality, as hedge funds no longer have the upper hand. But, then, neither do their bankers.
By Josh Friedlander

The financial drama of the past year has turned Wall Street upside down. In few places is this more evident than within the once-heady world of hedge fund financing. That's good news for Barry Bausano, who co-heads global prime finance at Deutsche Bank, the German financial institution that has spent eight years muscling its way into this lucrative business. These days, Bausano can sit back as the phone calls come in from worried hedge funds that now think they should add a global bank, particularly one that has largely escaped the credit crisis, to their stable of one or more U.S.-based broker/dealers.

"Our AA credit rating and large balance sheet, combined with our product breath and geographic footprint, have made us a natural...

ISSN: 2151-1845 / CDC10004H

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