The de-leveraging will mean unwinding funded positions, prices will come down. (File photo)
Highlights Leveraged trading constitutes the lion’s share of trading Hedge fund leverage is very high With interest rates remaining higher for longer, de-leveraging will occur in the market, pushing down prices Procyclicality setting in after a runaway bull market leads to sizable deleveraging of long positions Buy-and-hold investors are unlikely to see the heady returns enjoyed in 2020 and 2021 I have been writing about the rising cost of funds often, pointing out that interest rates are going to be higher for longer and that trading in the...