Credit Suisse to resize prime services business following $5.5 billion loss
The Swiss bank will undergo an extensive review of the business where it will focus on derisking and resizing its hedge fund servicing unit.
Tag: Leverage
Credit Suisse and Nomura face multi-billion prime brokerage losses from Archegos sell-off
The incident further highlights the dangers of over-leveraging hedge funds and could force some prime brokers to recognise the excessive risk that can occur.
Deleveraging hedge funds warn against further caps
Hedge funds are concerned a potential cap on synthetic leverage could cause several problems for certain strategies.
Deutsche Bank to cut prime brokerage leverage by €50 billion
Prime brokerage was one of the top revenue fallers for Deutsche Bank in 2017, due to its balance sheet-intensive nature and has over the years made major cuts with certain hedge fund clients.
Leverage ratio rules hammered by trade associations
Industry associations have raised several concerns with leverage ratio rules, following BCBS’s request for comments.