Friday, November 30, 2012

Hedge funds feel squeeze of tighter bank curbs




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, the good people at Reuters tell us.

A J.P. Morgan Chase exec 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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