JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said that market leverage — including prime brokerage, hedge funds, exchange traded funds and Treasury market arbitrage — is running high.
“Market leverage is pretty high,” Dimon said Wednesday in an interview on CNBC. “When you have that, you do have a higher chance that something will disrupt the market in a quick way and people will get rattled over it.”
Last week, hedge fund Situational Awareness — which had used leverage to bet on artificial-intelligence stocks — struck a deal to offload a chunk of its public stock book to Citadel after facing a pressure from a rout in the tech stocks. Dimon said Wednesday that “the market handled that very well.”
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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