Sunday, 29 March 2015
Last updated 1 day ago
Apr 10 2008 | 7:33am ET
HSBC Holdings is luring hedge funds spooked by the credit crisis and its possible impact on prime brokers.
The firm has spoken with hedge funds managing more than $100 million, HSBC global head of securities services Tim Howell says, and is looking to add some services traditionally offered by prime brokers to its existing administration and custodial services.
“Over the last three months, funds moving away from prime brokerage have been the most significant source of the pipeline we have,” Howell told Bloomberg News. “In the current economic climate, a lot of funds say they ascribe very high value to the creditworthiness of the person looking after their assets.”
In the unlikely event of a prime brokerage failure—made even more unlikely by recent Federal Reserve moves—client collateral is in danger of going into a general creditors’ pool. Non-collateral assets should be safe from such a seizure, but should be registered in the client’s name by the prime broker, a safety measure sometimes ignored.
Multi-billion hedge funds from the U.S. and Europe are leading the way out of prime brokers, Howell said.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…