Skip to main content

"One-Sixth Of All Hedge Funds Are 15x Leveraged" - Zerohedge

Picking up where we left off in June 2016, and calculates that "at current duration levels, a 1 percentage point increase in interest rates would lead to a decline of almost $1.2 trillion in the securities underlying the index."
As a reminder, Goldman calculated the entire duration universe at $40 trillion as of the summer of 2016; by now the number is substantially greater.

"the top decile of macro and relative-value hedge funds has been leveraged about 15 times in recent quarters. Combined, these funds account for more than $800 billion in gross assets, about one-sixth of all hedge fund assets."
Source: Government Watchdog Warns Market Crash Risk Rising: "One-Sixth Of All Hedge Funds Are 15x Leveraged"

Comments

Post a Comment

Popular posts from this blog

Letter: Why the geopolitics of international currency choice matters - FT

This coincidence must alert readers that a tempest is brewing on subjects noted: lurking inflation, increasing debt, suppressed interest rates and the shifting of hegemonic power.  There are only two important questions in investing that also apply to subjects impacting the future stability of the world — tell me why and tell me when.  Plender gives us the “why”, the ever-increasing “intolerable burden” of government debt and suppressed rates leveraging the global financial system. He gives us the tipping point.  What we await is “the when”, as in when do we know we have “tipped”.  Paul Hackett Madison,  NJ, US    Letter: Why the geopolitics of international currency choice matters
Post a Comment
Read more

How The Economic Machine Works by Ray Dalio - Bridgewater

Source: How The Economic Machine Works by Ray Dalio
Post a Comment
Read more

Best of the week - FT

  Bondi attacks show old hatreds are flourishing again — Stephen Bush The worried investor’s guide to 2026 — Katie Martin We urgently need to rebalance EU-China relations — Emmanuel Macron The argument Iranians have in private — Najmeh Bozorgmehr The hard politics of climate overshoot — Pilita Clark
Post a Comment
Read more