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The Market Ear on the seasonality of September.
aNet leverage lower
The MS PB Content notes that across US-based L/S funds, net leverage fell ~4% WoW to 46%. Nets are now hovering near the bottom decile relative to levels over the past 12 months. Given that most of this week’s net selling came via short additions as opposed to long selling, they saw gross leverage tick ~1% higher to 202% – while nets now look lighter relative to historical levels, current gross levels still track close to the top decile on a 1/3/5-year lookback. (MS)
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.