Hedge Fund Gross Leverage Soars To 5-Year High, Biggest Jump In 9 Months

This week marked a reprieve from the significant selloff in global bond markets (which according to Morgan Stanley's Mike Wilson is largely the driver behind today's market)...

hedge fund gross leverage soars to 5 year high biggest jump in 9 months

... as a below-expectations CPI print (and a lighter dose of UST supply) arrested some of the pressure, allowing investors to catch their breath and lean into pro-cyclical corners of the market (specifically Energy, Materials, and Financials).

Authored by Tyler Durden via ZeroHedge January 19th 2025