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Story summary
- US equity funding markets stay stretched as leverage pushes financing costs near record levels.
- On June 26, costs rose to 200 basis points above the Federal Reserve (Fed) funds rate, the highest since Dec 2024.
- Dealers held $211 billion of equity repo exposure on June 24, up 50 % year-over-year.
- Analysts warn that reliance on leverage could make any pullback more severe and raise correction risk.
