Hedge funds lower debt levels
Hedge funds ease gearing by a tenth, as credit crunch looms
Hedge funds have slashed the level of their gearing by
10 percent according to a private survey by British regulators.
The findings come amid growing fears that funds and companies have been
loading themselves with too much debt and are creating the possibility of a
collapse that could ripple through the financial sector.
Leading figures such as Jon Moulton, the head of Alchemy Partners; and Philip
Yea, chief executive of 3i, have warned about the risks of over-leveraging and
the fragility of some hedge fund players.