We've noted that the CDS market faces some huge clearance challenges. The flip side is that hedge funds face similar challenges, especially if they've heavily traded the market. This comes at a tough time for hedge funds, according to Financial News Online. Most assume that a severe shortage of skilled back office employees is an issue at most funds, and there's been a huge push to hire junior people with an eye toward training them. Many of these operations and back office employees are coming from investment banks. Prime brokers also are beefing up their operations, some through service providers, others by launching new home-grown services. Morgan Stanley recently launched a recruiting service.  

For more:
- here's the Financial News Online article

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