The leverage that hedge funds use is now being covered by collateral requirements.
US commercial banks such as ML are able to provide short-term lines of credit for liquidity (eg could be used for paying redemptions), credit against the collateral of foreign securities and credit against offshore investment fund shares.
The likes of Mathews Capital could also be using these collateral requirements to raise funds to buy into a potential bottom in the commodity sector.
DTE Price at posting:
26.4¢ Sentiment: None Disclosure: Not Held