Hedge funds using more leverage, says Greenwich

Nine of them said their prime brokers are extending more credit now than they were six months ago, and 20% said their prime brokers have decreased haircut requirements in the same period, said Greenwich.

This could play an important role in a widely expected regulatory review, with a planned US Securities and Exchange Commission move to require hedge funds to be registered.

"None of these developments would, on its own, be a cause for immediate concern," said Greenwich consultant Peter D’Ama

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