The support-service industry for hedge funds is expanding to meet the needs of the growing hedge fund industry. This industry is generally known as prime brokerage. It is expected to double in size over the next two to three years. The prime brokerage operation will provide fixed income hedge funds with front-end IT systems and support, credit enhancement, risk management, securities lending and settlement services. Many hedge funds provide services that allow themselves to concentrate on performance. Prime brokerage is one of the fastest-growing businesses for major investment banks. Internationally, prime brokerage is one of the fastest-growing businesses for major investment banks.
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