leveraged ETFs

Banks use exotic ‘crash puts’ to shed leveraged ETF risk

Banks are turning to obscure derivatives known as "crash puts" to shed exposure accumulated from the explosive growth of leveraged exchange-traded funds, according to a report by Bloomberg. The instruments, which pay out in the event of an extreme market…

South Korea moves up leveraged ETF deposit rules to July 31

South Korea's Financial Services Commission is moving to implement stricter deposit requirements for single-stock leveraged exchange-traded funds ahead of schedule, with the tripled minimum cash deposit of 30 million won now expected to take effect on July 31 rather than…

Goldman Sachs says AI trade rebalancing, not macro fears, drove this week’s global selloff

South Korea's Kospi suffered one of its most violent weeks in recent memory, with circuit breakers triggered repeatedly and the index closing down 5.81% on June 26 alone after plunging more than 8% intraday. The selloff, which saw Samsung Electronics…

AI chip rout exposes $270B in leveraged bets

A week of turbulence in artificial intelligence chip stocks has laid bare the scale of leveraged and speculative positioning built up around the AI trade, with Bloomberg reporting that the ecosystem of leveraged ETFs and structured products now oversees more…