Hedge Fund Net Leverage At All Time Highs As No Dips Are Sold
Two weeks ago, JPMorgan’s prime desk wrote about 2 main themes among the hedge fund community: elevated leverage levels and low exposure to cyclicals/value that tend to do better when rates are rising. However, over the past week, both of these things have come into sharper focus as US equities suffered one of their larger pullbacks in a while and rates globally jumped higher towards the end of this week.
So what has the largest bank’s prime brokerage desk seen in the past week?