Hedge funds feel squeeze of tighter bank curbs

Reuters – Tighter capital rules being imposed on banks to reduce risk in the financial system are starting to trickle down to hedge funds looking to borrow money to trade.

A J.P. Morgan & Chase executive said Thursday the tougher capital holding requirements for banks mean some hedge fund borrowing costs will rise in the coming years. And that could make some trading strategies that rely on higher levels of leverage, or borrowed money, more costly.

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