Hedge Funds Have Never Been More Short US Banks

While we will have more to say on yesterday's bank stress test result soon - especially when it comes to the $6.4 trillion elephant in the room, namely banks' commercial real estate exposure - here are the highlights of what the Fed revealed after the close on Wednesday courtesy of Goldman's trading desk.

  • Banks in aggregate on the test saw a max drawdown on stressed capital of 2.3%- this was the lowest we’ve seen in several years.

hedge funds have never been more short us banks

Authored by By Tyler Durden via ZeroHedge June 29th 2023