Collateral cushions swell as US hedge fund borrowing tops $5.6trn
Top 10 funds’ borrowing becomes 3.7% over-collateralised amid record Q1 leverage
Credit providers to US hedge funds sharply hiked collateral coverage for their largest clients in the first quarter, as industry-wide borrowing reached the highest level in at least 12 years.
The 10 largest hedge funds ended March with their borrowing 3.7% over-collateralised, up from 0.6% at end-December and the highest rate since March 2021. The aggregate collateralisation rate had remained
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