Hedge funds moving more assets into prime custody accounts with active management
Hedge fund assets available for prime custody have risen 40% since 2010 to $684 billion at the end of August, representing a quarter of all assets under management. The increase in assets parked with custodians is a result of increasing AUM in general, coupled with reduced reliance on prime brokers for financing, according to a study* by BNY Mellon.
The move to prime custody accounts has been matched by a signficant shift in the way hedge funds source leverage.
The vast majority of leverage is
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