EU hedge funds lean on repo for leverage
Around 60% of EU hedge fund borrowings due within one week, Esma reports
European Union hedge funds are far more reliant on short-term repo funding than their US counterparts, a report by the European Securities and Markets Authority shows.
Around 60% of total EU hedge fund borrowings have to be repaid within a week and 86% within a month, compared to 50% and 65%, respectively, of US hedge fund borrowings.
EU funds also rely on the repo market for their cash needs
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