Hedge Fund Leverage Drops

Sep 27 2011 | 1:36pm ET

Hedge funds slashed their leverage last month faster than at any time in almost three years, according to a new report.

Margin debt on the New York Stock Exchange fell 11.1% in August, Bank of America Merrill Lynch said. That's the most since November 2008.

Despite the drop in leverage to $272 billion, margin debt on the NYSE remains above its most recent lows in June 2010 and February 2009; on the latter date, leverage was just $173.3 billion.

Hedge funds began August with their highest equity exposure since the financial crisis began.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...