Institutional Funding Spreads Near Highest Levels Since December 2024
Funding spreads for long stock exposure rose eight basis points last week, signaling increased institutional demand across futures, options, and swaps.
Summary
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Terms & Concepts
- Funding Spread: The difference in interest rates or costs between borrowed and lent funds, often indicating market demand for leveraged positions.
- Long Stock Exposure: An investment strategy aiming to profit from a stock's price increase by holding or simulating ownership through financial instruments.
- Swaps: Derivative contracts where two parties exchange financial obligations, often used to gain exposure to assets without direct ownership.