Ang, Andrew. <br/><br/>
Hedge Fund Leverage / 
Andrew Ang, Sergiy Gorovyy, Gregory B. van Inwegen. 
 - Cambridge, Mass.  National Bureau of Economic Research  2011. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w16801 .
 - Working Paper Series (National Bureau of Economic Research)  no. w16801. .
<br/><br/> February 2011. 
<br/><br/> We investigate the leverage of hedge funds in the time series and cross section. Hedge fund leverage is counter-cyclical to the leverage of listed financial intermediaries and decreases prior to the start of the financial crisis in mid-2007. Hedge fund leverage is lowest in early 2009 when the market leverage of investment banks is highest. Changes in hedge fund leverage tend to be more predictable by economy-wide factors than by fund-specific characteristics. In particular, decreases in funding costs and increases in market values both forecast increases in hedge fund leverage. Decreases in fund return volatilities predict future increases in leverage. 
<br/><br/>
<br/><br/><br/>System requirements: Adobe [Acrobat] Reader required for PDF files. <br/>Mode of access: World Wide Web.