leverage

BIS cites hedge fund meltdown in new warning on leverage

JPMorgan Chase has ended its lending relationship with Situational Awareness, the AI-focused hedge fund founded by former OpenAI researcher Leopold Aschenbrenner, after the fund lost roughly 67% of its value in July, according to Reuters. The move came as the…

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Margin debt surge across Asia raises fears of another leverage-driven crash

Surging margin debt across China, India, and Japan is raising fresh warnings of a leverage-driven market crisis in Asia, even as the fallout from South Korea's summer stock rout continues to ripple through the region. In a commentary published Monday,…

Griffin says Citadel unwound 80% of risk from AI fund fire sale

Ken Griffin told Citadel clients on Friday that his firm has unwound more than 80% of the aggregate risk from the portfolio it acquired from Leopold Aschenbrenner's Situational Awareness hedge fund, conducting more than 100 block trades representing over $4…

Central bank crisis tools may be fueling the next blowup, WSJ warns

Central banks may be inadvertently encouraging excessive leverage and subsidizing government borrowing through the very emergency facilities they created to prevent market meltdowns, according to an analysis published Saturday by The Wall Street Journal News Corp.

Foreign investors pull billions from Taiwan as Korea’s deleveraging rout spreads

A cascade of forced liquidations in South Korea's overleveraged equity market has rippled across Asia, with foreign investors pulling $8.76 billion from Taiwan stocks in a single week as the region's two largest chip-dependent markets reel from a sharp reversal…

Goldman Sachs warns Korea-driven leverage is pushing global markets toward crisis

Goldman Sachs The Goldman Sachs Group, Inc. has warned that leveraged demand from Asia — centered on South Korea — has pushed financing rates for S&P 500 total return futures to historic highs, with dealer balance sheets approaching saturation at…