Prime brokerage transactions

Hedge Funds & Prime Brokerage Anatomy™ Go Premium The classic margin loan, yesterday The classic stock loan, yesterday The classic long swap, yesterday The classic short swap, yesterday There is no industry standard prime brokerage agreement, so this is not so much an anatomy as a collection of resources about an amorphous subject. Hedge fund | AIFMD | Depositary | Prime broker | prime brokerage agreement | synthetic prime brokerage | margin lending | custody asset | CASS Anatomy | reuse & rehypothecation | hedge fund | leveraged alpha | greeks | short selling Index: Click ᐅ to expand: Prime Brokerage Securities Financing Investment Strategies Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

The classic prime brokerage transactions, illustrated in the panel:

• Physical long: A physical long position financed with a margin loan.
• Physical short: A physical short position created by selling a stock borrowed under a stock loan.
• Synthetic long: A “synthetic” economic equivalent of a physical long position created by entering a “long” equity derivative as a Floating Amount Payer.
• Synthetic short: A “synthetic” economic equivalent of a physical short position created by entering a “short” equity derivative as a Equity Amount Payer.

See also

• Prime brokerage charging
• Prime brokerage