More Hidden Leverage---Fund Financing Lines Are Surging

The size of fund financing loans is increasing along with banks’ exposure to the US$400bn market as managers raise ever-larger funds, but the wall of cash pouring into the sector is also encouraging smaller debt funds to leverage portfolios to maintain returns.

 

 

 

https://www.reuters.com/article/us-debt-funds/debt-funds-lever-up-as-fund-financing-grows-idUSKBN1I23Z8

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