The risks are identified in hedge and real estate funds
Lenders increasingly promote products that combine HELOCs with traditional mortgages
Consultation paper identifies regulatory approaches aimed at enhancing investor protection
Regulators are concerned that retail investors may not be able to assess the risks associated with these complex products
Leverage may forecast the severity of the economic impact of a banking crisis
New rules will incorporate Basel Committee’s leverage ratio requirements
Draft guidance sets out expectations for content, format and frequency of leverage disclosure
Vast majority of leveraged ETF buyers are direct investors
Estimated shortfall to comply with new leverage rule is US$68 billion, says Fitch
Bull and bear funds potentially magnify positive or negative returns from the MSCI Japan Index