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Prime broker is a firm, such as securities firm and investment bank, which offers bundled services to clienteles such as stock specialists, professional traders, hedge fund managers, money managers and other professional investors. These clients have one common denominator and that is their need for an ability to borrow funds and securities for investment purposes. Prime broker offers hedge fund a centralized way for clearing securities and nets the hedge fund's requirement for collateral in all deals the prime broker manages. Prime broker provides many other services and one of which is providing technological tools to equip their clients the capability to keep track of portfolio positions and other aspects of portfolio reporting for effective money management. Some of the technological solutions that a prime broker may give to clients are real-time portfolio reporting and daily statements. The kind of bundle package that a prime broker may offer varies from one broker to another, and some of the services that may be offered in the package are in the areas of global custody, finance and lending of securities. What may also be included in the bundled package are customized technology and operational support. Under the global custody classification of services, a prime broker may offer services such as asset servicing, clearing and custodial services. Prime brokers also have stocks and other securities available for lending, and all the client needs to do is have securities, money or Letter of Credit available and ensure that the value is the same or greater than the loan. Other prime brokerage services a prime broker may offer are financing services aimed at making leveraging of client's assets simple, and operational support services by acting as the primary operations contact between hedge funds and broker dealers. Some prime brokers offer a more specialized set of prime brokerage services. A number of prime brokers own commercial properties, and some of the special services they offer are subleasing blocks of space to clients, while at the same time offering services on-site. In order to stay competitive in their industry, some prime brokers offer extra prime brokerage services such as capital introduction, a term that refers to a prime broker introducing a hedge fund client and a hedge fund investor to each other. Prime brokers also offer prime brokerage services in the form of consulting services and risk management advisory services particularly to new hedge funds. At present, prime brokerage is a competitive field and is a significant contributor in the success of the investment banking industry. Various benefits can be received by clients if they avail of prime brokerage services, and some of these benefits are in the areas of making asset management easy while realizing profits at the same time. Similar to other financial services, prime brokerage services may have a variety of benefits, but they also have risks involved. However, these risks are manageable, and preparing for critical market events is part of the business. If you are showing concern for more information, you will be assured by visiting prime broker and also prime brokerage.
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