This may be ann indication that the good times are returning to Wall Street: Top banks are once again actively wooing hedge funds and private equity funds with increasingly favorable credit offers.

The atmosphere has really changed, that's for certain. Top banks are under pressure to somehow jack returns in a weak trading environment. With alternative investment firms faring well, banks have apparently decided that they are now among their best lending options. Recall that in the aftermath of the financial crisis, the prime brokerage industry took a big hit. That has proven to be temporary. Now the competition, sans some big players likes Bear Stearns, is as heated as ever, especially as more funds opt for multiple primes.

The conclusion that banks are wooing hedge funds more actively was borne out by a Fed survey of the top 20 banks, which noted that at many banks credit terms were easing, counterparty strength was improving and bank willingness to take on more risk was rising, according to the Financial Times. The chief investment officer of one large hedge fund told the FT that he had "never seen a more accommodating environment in my career", with credit officers at some banks actively pitching their products.

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