Details

<p>Acknowledgments ix</p> <p><b>PART I The Business</b></p> <p>Chapter 1 Extraordinary Markets 3</p> <p>Chapter 2 Fundamentals of Prime Finance 27</p> <p>Chapter 3 Strategy and Opportunity 41</p> <p><b>PART II The Players</b></p> <p>Chapter 4 Hedge Funds 55</p> <p>Chapter 5 Hedge Fund Managers and Investment Advisers 99</p> <p>Chapter 6 Prime Brokerages 117</p> <p>Chapter 7 Prime Brokerage Business Model 135</p> <p>Chapter 8 Securities Lending and Financing 165</p> <p>Chapter 9 Executing Brokers 185</p> <p><b>PART III The Risks and Rewards</b></p> <p>Chapter 10 Life Cycles 199</p> <p>Chapter 11 Risk Management 205</p> <p>Chapter 12 Legal and Compliance Issues 213</p> <p>Chapter 13 What the Future Holds 235</p> <p>Appendix A Prime Broker List 255</p> <p>Appendix B List of Securities Lenders 257</p> <p>Appendix C Prime Broker Due Diligence Questionnaire 259</p> <p>Appendix D Useful Links—Prime Finance 265</p> <p>Bibliography 267</p> <p>Glossary of Useful Terms 277</p> <p>About the Author 281</p> <p>Index 283</p>

<p><b><small>J. S. AIKMAN</small></b> is a management consultant and lawyer advising managers and financial institutions. He also lectures on hedge funds and investment banking at the University of Toronto. Previously VP and counsel for a bulge-bracket investment bank in London, Aikman has broad international experience in alternative investments and has served as adviser to many successful entrepreneurial ventures. Aikman completed his MBA at Oxford University. He may be reached at ja@jsaikman.com.

<p><b>Managing New Risk in a New World</b> <p>"Whether you have been in the business for twenty years or are just interested in how the machine really works, Aikman's book is a must-have."</br> <b>—<small>STEPHEN BURNS</small>, Director of Electronic Equity Trading, Wellington West Capital Markets</b> <p>The collapse and sale of Bear Stearns in 2008 marked the beginning of a series of failures of financial institutions in what was to be the worst financial crisis since the Great Depression. Only a few months later came the bankruptcy of Lehman Brothers. <p>Prime brokerages attached to each of these investment banks were caught in a difficult position as clients—mostly hedge funds and institutional firms—attempted to withdraw and reclaim any assets stored at the failing firms. Many were unable to do so, and while assets were held in abeyance during bankruptcy proceedings, hedge funds struggled to manage increasingly risky and overleveraged bets with less liquid capital. <p>Before the crisis, both regulators and market participants disregarded the complex and dangerous nature of the relationship between prime brokers (the banks) and their clients (the funds). In <i>When Prime Brokers Fail</i>, J. S. Aikman examines the convoluted structure of this relationship, the main participants, and the impact of the near collapse of prime brokerages on the financial world. He also covers new ways to manage an inherently risky business, the structural adjustments firms will need to make to avoid similar disasters, and the inevitable regulation.

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