2009-03-03 — ft.com
Hedge funds cut their borrowing to almost nothing in the wake of the collapse of Lehman Brothers, according to research by the City watchdog.
Data compiled by the Financial Services Authority show that leverage fell to just 1.15 times hedge fund net assets in October, down from almost twice a year earlier.
A semi-tangential comment: does anyone else find it funny that they're referring to credit as "dry powder"? One would think the lesson has been learned now that credit isn't capital. Capital is something that isn't callable when the market crashes.
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