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The End Of Leverage

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Don't count on a recovery of the mortgage-backed securities business any time soon. Sure, Blackstone says they're going long subprime but Goldman is still short and, more importantly, investment banks are slashing leverage provided to hedge funds for mortgage trades.
Roddy Boyd of the New York Post describes today how some of the biggest prime brokerage banks, including UBS and RBS Greenwich Capital, have cut back on their financing for hedge fund clients.
Brokers' Woes Trim Hedges [New York Post]