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Stock-market leverage risks are rising, Citadel strategist warns

Citadel Securities strategist Scott Rubner said big hedge funds and institutional managers are among the stock-market buyers contributing to the leverage buildup.

Reported · Written up by our desk · Sectors

MarketWatch reports that Citadel Securities strategist Scott Rubner characterizes the current tape as a “stock-market reset,” while warning that a leverage buildup could be forming as additional buyers enter the market.

In the strategist’s view, the broader list of market participants shifting toward the positive direction includes large hedge funds and institutional managers, which he flags as part of the leverage-related risk.

MarketWatch notes the warning is tied to the potential for more leveraged positioning as those groups increase their exposure.

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