S&P 500 Ex. Financials – Net Leverage and Interest Coverage Since the Global Financial Crisis, there has been a sharp increase in the median S&P 500 stock’s leverage ratio, a trend that could have substantial effects on market risk and volatility. Image: Goldman Sachs Global Investment Research
Hedge Fund Gross and Net Leverage Hedge fund gross leverage remains extremely elevated, while net leverage fell sharply during recent market turmoil but has since rebounded significantly, though it is not yet back to highs. Image: Goldman Sachs Global Investment Research
Equity Net Long Positioning – Leveraged Funds and Asset Managers Net Future Positions Leveraged funds and asset managers continue to maintain significant net long positions in U.S. equity futures, despite showing some reduced bullishness. Image: Goldman Sachs Global Investment Research
ETF Assets Leveraged Long/Short Products Ratio With leveraged long ETFs leaving inverse products in the dust, market’s optimism is so contagious that bears are considering a career change! Image: Bloomberg
S&P 500 and Leveraged Long vs. Short ETF Volumes The degree of activity in leveraged long vs. short U.S. equity ETFs has experienced a substantial decline as sentiment shifts. Image: Topdown Charts
Hedge Fund Net Leverage Aggregate hedge fund net leverage remains high compared to the average level. Image: Goldman Sachs Global Investment Research
Positions in U.S. Equity Futures by Asset Managers and Leveraged Funds Asset managers and leveraged funds have decreased their long positions in U.S. equity futures since the beginning of the year. Image: J.P. Morgan
U.S. Stock Market Leverage / S&P 500 Market Capitalization U.S. stock market leverage as a percent of S&P 500 market capitalization continues to rise. Is it time for investors to be cautious? Image: Topdown Charts
S&P 500 Index Annualized Operating Leverage, Earnings Per Share Growth Less Sales Growth S&P 500 operating leverage is well above average. Is it sustainable? Image: Morgan Stanley Wealth Management
Hedge Fund Leverage Hedge fund net leverage is close to record levels. It is also high compared to the average level of the last ten years. Image: Morgan Stanley
Operating Leverage Contribution and Earnings Rebound Morgan Stanley expects operating leverage to fuel an earnings rebound, through aggressive cost-cutting measures. Image: Morgan Stanley Research