Understanding Global Macro Leverage

By: John Casano

This article was first published as a chapter in Global Macro: Theory and Practice, by Risk Books.

Since the latter half of 2007, a number of significant macroeconomic factors have dominated the global investment landscape. What started out as a bursting of the housing bubble in the US turned into a cascade of events that eventually threatened the entire global financial system in 2008. During that period, many fundamental investment strategies based on micro-level analysis of companyspecific s