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An informative primer on the new landscape of leading prime brokers Before the recent financial crisis, both regulators and market participants disregarded the complex and dangerous nature of the relationship between prime brokers (the banks) and their clients (the funds). In When Prime Brokers Fail, J. S. Aikman examines the convoluted structure of this relationship, the main participants, and the impact of the near collapse of prime brokerages on the financial world. Filled with in-depth insights and expert advice, When Prime Brokers Fail takes a close look at the unheeded risks of prime finance and lays out the steps required for managers to protect their funds and bankers to protect their brokerages. * Examines the challenges, trends, and risks within the prime brokerage space * Discusses the structural adjustments firms will need to make to avoid similar disasters * Analyzes the complex relationship between hedge funds and their brokerages and the risks that multiply in extraordinary markets * Covers new ways to manage an inherently risky business and the regulations that may soon be introduced into this arena Engaging and informative, this timely book details the intricacies and interdependencies of prime brokerages and the role that these operations play in our increasingly dynamic financial system.

Praise for When Prime Brokers Fail "An essential guide to understanding why so many hedge funds failed during the 2008 crash and why so many will continue to fail in the future." François Lhabitant, PhD Chief Investment Officer, Kedge Capital Professor of Finance, EDHEC Business School "A mustread for every hedge fund manager, investment banking executive, and prime brokerage professional. This is hands down the most educational resource on the challenges, trends, and risks within the prime brokerage space." Richard Wilson, founder of the Prime Brokerage Association and PrimeBrokerageGuide.com "Aikman does a masterful job of examining and explaining the intricacies and interdependencies of prime brokerages and the role that these operations play in our increasingly complex financial system." Peter J. Shippen, CFA, CAIA President, Redwood Asset Management Inc. The New Dangers of Prime Finance In this revealing book, J. S. Aikman takes a detailed and thorough look at the complex relationship between hedge funds and their brokerages and the risks that multiply in extraordinary markets. Before the credit crash, the inextricable relationship between banks and brokers was a little-known risk for both parties. When troubles loom large, the unraveling of these tightly wound affiliations can seriously damage both organizations and induce systemic financial collapse. When Prime Brokers Fail takes a close look at the unheeded risks of prime finance and lays out the steps required for managers to protect their funds and bankers to protect their brokerages.