JPMorgan Prime Brokerage Report Shows Hedge Fund Short Covering

The trend towards hedge fund short covering is increasing, a recent report shows, as leverage usage fluctuates among hedge fund strategies. Also see a list of top hedge fund letters Hedge fund short covering seen in stock borrowing Convertible arbitrage strategies have among the largest leverage ratio increases month to date, up 5.67%, a JPMorgan Prime Brokerage report shows, pointing to positioning trends ahead of an expected rate hike. In a questionable market environment for interest rates, and amid comments from Janet Yellen last Friday indicating rates could rise, it is high grade fixed income which has reduced leverage the…