We argue that post-crisis banking regulations pass through from regulated institutions to
unregulated arbitrageurs. We document that, once post-crisis regulations bind post 2014 …

Using novel credit data, we show that hedge fund borrowing is significantly
overcollateralized, primarily with rehypothecable securities. An idiosyncratic liquidity shock …

We use proprietary data on intraday transactions at a futures brokerage to analyze how
implied leverage influences trading performance. Across all investors, leverage is negatively …

Hedge funds are dynamic, versatile, opaque, and, according to BarclayHedge, their assets
under management have nearly doubled from $2.6 trillion in 2015 to $4.9 trillion in 2021. In …

Hedge funds often use leverage provided by prime brokers to enhance their investment
returns. We investigate how prime brokers' capital constraints impact the performance of …

The implementation of the Volcker Rule (section 619 of the 2010 Dodd-Frank Act) impacts
funding liquidity of hedge funds, their liquidity risk exposure and liquidity provision to the …

I show that hedge funds with a high exposure to market-wide funding shocks—measured by
changes in Libor-OIS spreads—subsequently underperform funds with a low exposure to …

Not unless distress spreads to multiple broker-dealers. Broker-dealers do not participate
directly in equity markets in large quantities; instead, they participate indirectly by lending to …

We introduce a new proxy for the health of financial intermediaries—the Leverage Bearing
Capacity (LBC). LBC is the leverage of a fictitious intermediary that targets a fixed level of …

We introduce a new proxy for the health of financial intermediaries-the Leverage Bearing
Capacity (LBC). LBC is the leverage of a fictitious intermediary that targets a fixed level of …