Trapped in a deleveraging spiral

In the days of easy credit, hedge funds loaded up on leverage in pursuit of higher returns. Now the money has largely dried up, and hedge fund managers have been forced to sell assets to meet margin calls from prime brokers and repay investors who were themselves leveraged.

Deleveraging has been a painful experience for many hedge funds. The process has been feeding on itself, as forced sales have depressed asset values and prompted further margin calls and redemption requests.

Neill Ebers, chie

To continue reading...

You must be signed in to use this feature.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: