(CNBC) The role played by hedge funds in the market volatility surrounding Deutsche Bank has once again highlighted the pressures faced by smaller asset managers amid an already challenging climate for the industry.
Deutsche Bank CEO John Cryan’s opening line in his letter to employees last week pinned some of the blame for lender’s share price plummet on “speculation in the media” that some hedge fund clients had reduced business with the German lender. Cryan was referring to prime brokerage activities, wherein banks provide a bundled and tailored package of services to hedge funds, such as securities lending or cash management.
