Credit Suisse, Bank Of America Gain In Asia Prime Battle

May 22 2012 | 12:23pm ET

Asia's prime brokerage market, dominated for so long by just two banks, is becoming more competitive, a new survey shows.

Indeed, one of those two banks, Morgan Stanley, is now in danger of dropping out of the duumvirate with Goldman Sachs. Credit Suisse, the region's third largest prime broker, is now just $420 million in assets behind Morgan Stanley, the annual AsiaHedge survey shows. Just a year ago, the gap was $4.8 billion.

Four years ago, Goldman Sachs and Morgan Stanley accounted for some 60% of Asian hedge fund assets. Now, they're settling for 30% between them, while three other prime brokers, Credit Suisse, Deutsche Bank and UBS, have built their market shares to more than 10% each. Those five now command 65% of the regional prime brokerage market.

Bank of America also made gains, boosting its prime brokerage assets in the region by more than one-third to take the number six spot in the rankings from Citigroup. BofA and Credit Suisse were the only prime brokers to add clients in a region that saw more than 80 hedge funds close last year and total prime brokerage assets fall from US$150 billion to US$137 billion.

There are other signs of a shakeup: Deutsche Bank is now the largest prime broker in Hong Kong, thanks in no small part to its servicing of Azentus Capital, the biggest Asian hedge fund launch of 2011, and despite it loss of 10% of its assets. Deutsche Bank, the fourth-biggest prime broker in the region, also displaced UBS, the fifth, as the largest prime broker in Australia.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.