Battle for Prime Brokerage Business is Heating Up, Says Bloomberg Markets
New York (ots/PRNewswire)
As Wall Street follows the money trail and focuses its sights on hedge funds, two of the world's largest investment banks are facing fierce competition from behind, according to the May issue of Bloomberg Markets Magazine.
Morgan Stanley and Goldman Sachs Group Inc. are leading the battle to dominate the prime brokerage business, which provides trading and accounting services for the US$1 trillion hedge fund industry, a Bloomberg Markets story reveals.
"It's like the Cold War," Alex Ehrlich, global head of prime brokerage for UBS, tells Bloomberg Markets. "Nobody can back down, and they can't change the model."
In an article entitled "Riding the Hedge Fund Boom," Bloomberg Markets senior writer Michael Peltz talks to the movers and shakers in prime brokerage. The Bloomberg Markets writer uncovers the expanding scope of special accommodations that banks and brokerage firms are offering to hedge funds in an attempt to win more of their business. The number of hedge funds has almost quadrupled in size over the past decade, and hedge funds now account for 40 percent of equity related revenue on Wall Street.
The May edition of Bloomberg Markets will hit newsstands in mid-April and will be available for sale at all local Borders and Barnes & Noble bookstores and other local newsstands. Bloomberg Markets is distributed to all Bloomberg terminal users. Bloomberg Markets articles are also available on the Bloomberg terminal.
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About Bloomberg Markets
Bloomberg Markets is a monthly magazine providing insight into financial executives, the firms where they work, and the companies in which they invest. Bloomberg Markets has a 300,000 world-wide circulation and is published monthly by Bloomberg News. Bloomberg Markets is available to all Bloomberg terminals users and sold in local newsstands and in Borders and Barnes & Noble bookstores.
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