"Everyone is being treated the same by banks, both big and small funds," said Jonathan Kanterman, managing director with Stillwater Capital, which invests in other hedge funds but not Harbinger. "Several years ago, he would have been able to get $400...
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"Everyone is being treated the same by banks, both big and small funds," said Jonathan Kanterman, managing director with Stillwater Capital, which invests in other hedge funds but not Harbinger. "Several years ago, he would have been able to get $400 million without posting any collateral. Now, having to pledge specific assets is just indicative of today's credit environment."
Also, pledging hedge fund assets as collateral for a loan to finance a wireless network that could take years to build and produce a profit may raise some eyebrows among Falcone's hedge fund investors.
If the wireless venture falters, the lenders lined up by UBS could use the collateral posted by Harbinger to pay off whatever debts are owed on the loan.
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