Banks offering credit again in hedge fund land grab

Forbes – Prime brokers are offering hedge funds more credit at a lower cost in a desperate battle for market share, although the biggest hedge funds are reluctant to move away from brokers they consider safe.

With the risk of a bank failing still a key concern, many funds now pick three top brokers from a list of JPMorgan , Goldman Sachs, Credit Suisse, Deutsche Bank or Morgan Stanley.

‘Banks have all lowered their rates and are competing again — at one moment they were pushing hedge funds away, now they’re competing for funds,’ said Oliver Dobbs, chief investment officer of portfolio management at hedge fund firm CQS, talking about convertible arbitrage strategies.

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