Margin
Prime Brokerage Anatomy™
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In the context of PB margin could be:
- The total value of assets the prime broker requires its client to hold in excess of its total liabilities
- The prime broker’s general right to set and adjust that limit and call for additional assets at any time.
Start off with some fundamental observations about the prime brokerage product:
- The PB makes its money by lending to its clients. It does not make money