Thank you for being the one who reads this (boring) material and being able to break it down to have a better understanding of what is happening. I wish I had studied this instead of management, so thank you again for making this easier to know why things might be happening the way they do.
"Prime brokerage gross leverage just hit a five-year high of 322.7%… with net leverage at the 85th percentile and long-short books at the 99th.
The trend-following funds are loaded up… and if things go wrong, they’re going to be dumping… hard. The line in the sand remains 7,500 on the S&P 500."
Kvestion: do we know what stocks or indices are being bought on margin here?
Thank you for being the one who reads this (boring) material and being able to break it down to have a better understanding of what is happening. I wish I had studied this instead of management, so thank you again for making this easier to know why things might be happening the way they do.
"Prime brokerage gross leverage just hit a five-year high of 322.7%… with net leverage at the 85th percentile and long-short books at the 99th.
The trend-following funds are loaded up… and if things go wrong, they’re going to be dumping… hard. The line in the sand remains 7,500 on the S&P 500."
Kvestion: do we know what stocks or indices are being bought on margin here?
Everything is being bought on margin... It's at all time highs. Largely the names i've discussed in the every buyer model. The SOXL tells all.
I understand overall levels of margin, but so we know if that margin flowing more to any particular stocks or indices?
For instance, if margin is flowing disproportionately to Magnificent Seven stocks, then the Russell 2000 isn't as relevant.