Saturday, 10 October 2015
Last updated 9 hours ago
Oct 8 2012 | 12:09pm ET
Hedge funds are levering up for the first time this year.
Margin debt on the New York Stock Exchange rose 5.4% year-on-year in August, according to Bank of America Merrill Lynch. That benchmark for leverage has dropped for nine straight months.
"Leverage can be used as a sentiment indicator as it is related to investor confidence," BofA, which tracks the use of leverage among investors, including hedge funds, said. "It tends to be correlated to the direction of the equity market—investors are likely to gain confidence and add leverage when the equity market is going up and vice-versa. The current reading shows that investors are becoming more confident in the market, which supports further upside."
Oct 7 2015 | 4:57am ET
Charity A Leg To Stand On (ALTSO) will hold its 12th Annual Hedge Fund Rocktoberfest – NYC on October 15 and its 4th Annual Rocktoberfest - Chicago on October 22. Read more…