Hedge fund stock borrowing hits record high, says Goldman

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Rising interest rates, which have made it cheaper for speculators to borrow stock and bet on movements in company stock prices, have seen hedge fund industry borrowing hit record highs, according to a report by Reuters.

The report cites a Goldman Sachs client note on Wednesday as highlighting the increase as well as the fact that hedge funds overall remain undecided on the market direction due to ongoing macroeconomic uncertainty.

According to Reuters, higher interest rates mean that hedge funds are now earning money on the collateral they post with banks to act as insurance against defaults on their stock borrowing.

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