US Long/Short Net Leverage at 43.7%, a Five-Year Low; Fell 3.2pts Last Week, Largest Drop Since Liberation Day
@GoldmanSachs prime brokerage data shows US long/short net leverage fell 3.2 points last week, the largest weekly decline since Liberation Day and the fourth-largest over the past five years.
Essentially all of the net exposure reduction since end of July has come from an increase in shorts, not a reduction in longs.
Short exposure is now near five-year highs while long exposure remains in the 53rd percentile over the past three years and the 72nd percentile over five years.
That means long books haven't been meaningfully reduced yet. If performance pressure continues, there's scope for further de-grossing through long sales alongside short covering.
@GoldmanSachs prime brokerage data shows US long/short net leverage fell 3.2 points last week, the largest weekly decline since Liberation Day and the fourth-largest over the past five years.
Essentially all of the net exposure reduction since end of July has come from an increase in shorts, not a reduction in longs.
Short exposure is now near five-year highs while long exposure remains in the 53rd percentile over the past three years and the 72nd percentile over five years.
That means long books haven't been meaningfully reduced yet. If performance pressure continues, there's scope for further de-grossing through long sales alongside short covering.