Prime Brokerage Assets
Prime Brokerage Assets from Lehman
The following is an excerpt from a recent story about hedge fund assets being stuck within Lehman's prime brokerage business:_______________________________________
Lehman Brothers Holdings Inc. will take ``considerable time'' before returning assets stranded by the world's largest bankruptcy to hundreds of hedge fund clients, according to PricewaterhouseCoopers.
``This process could take several months,'' said PwC, Lehman's bankruptcy administrator in London, in a statement today. PwC said it is working ``very closely'' with the U.K.'s Financial Services Authority to sort out how much is owed to ``many hundreds of clients'' with securities tied up at Lehman.
GLG Partners Inc., which oversees $24 billion, CQS U.K. LLP and Bay Harbour Management LC are among the hedge funds that used Lehman as a prime broker for borrowing stock and clearing trades. Funds with assets at Lehman probably will have to write them down when they report net asset values, according to Laven Partners LLP, a London-based hedge fund consultant.
``If your hedge fund assets have been included with Lehman's, you're in the back of a queue that's quite long,'' said Laven Partners founder Jerome Lussan. ``What's the market value of, say, $100 million that's owed to you by Lehman? I'd say it's not that great, and it's going to have to be written down.''
Related to Prime Brokerage Assets:
- Prime Brokerage Business
- Prime Brokers Association
- Prime Brokerage New York
- Asian Prime Broker Growth
- Prime Brokerage Sales Trend
- Prime Broker Survey Results
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