Prime Brokerage Definition, Roles, Necessities, Examples
A prime brokerage acts as a facilitator for hedge funds and other giant funding entities. They handle a selection of tasks corresponding to securities lending, offering leverage, and even danger administration. Because they will earn money in a quantity of methods, prime brokerage units could make a nice profit for corporations. First, brokerages charge fundamental charges for custody, concierge, and other companies. In instances of securities lending, collateral is usually required by the prime brokerage. This allows it to reduce the danger it experiences in addition to give it faster access to funds if wanted. To perceive prime brokerage, it helps to study first about hedge funds, what they do,