From FT Alphaville:
Tired of these volatile and unpredictable markets? Fear not, we are — apparently — halfway through the deleveraging process.
Global wealth management company Bernstein has surveyed its hedge fund clients to produce a snapshot of where they stand. Or think they stand, at least.
For a start, average gross leverage has fallen to 142 per cent of assets under management from about 175 per cent in 2006 and 2007. Most respondents, 63 per cent, think the hedge fund deleveraging process is at least halfway over.
As for redemptions, we’re halfway through there too....MORE