We have read so many news online about prime brokers axing their team in Asia. Even discount brokers (e*trade) did not keep their chopping boards, as they axed their institutional business in Asia - supposedly one of their most profitable arms in the company.
Yesterday we also receive news of Melvyn Ford's departure as head of Asian prime brokerage at Merrill Lynch Hong Kong. Rumors run wild but one can only guess the happenings behind the scene. Wait, let's not forget Citigroup, who recently received saving grace from sovereign wealth funds in Asia (thanks, Singapore!). Their hedge fund business were not spared either - with many unnecessary fat cut off the meat recently.
Ironically, we do not hear UBS cutting any jobs. Instead, they seem to be rewarding their employees properly! Finally, we can clearly separate the good prime brokers from the great prime brokers! Good on you UBS!
I mean, look, what has a housing market issue in the US got to do with a prime broker's job in Singapore or Hong Kong? Why axe the guys who are running the mill making money for you, when owners of these mills are "gambling behind closed doors"?
It's in times like these that we wish we were working for Asian banks.
felix@oshedge.com