Hedge funds, asset managers – cannot trust their prime brokers to manage risk = deleveraging in regulatory morass.

New Post – Important – The Deal that Broke the Bank – It is time to Connect the Dots. What is with Risk Divergence between banks in the USA vs. Europe and Japan?https://t.co/R6YsBBQuIv

via @BearTrapsReport pic.twitter.com/3qQNLrq5qL

— Lawrence McDonald (@Convertbond) March 30, 2021

Rehypothecation- the age old practice whereby banks and brokers use, for their own purposes, assets that have been posted as collateral by their clients. The lack of transparency in the formerly highly profitable total return swap arena, left banks dancing in darkness, oblivious.

— Lawrence McDonald (@Convertbond) March 31, 2021