(HedgeCo.Net) Hedge funds across the United States are deploying near-record amounts of leverage in their equity trades and debt-backed strategies, according to prime brokerage reports. Reuters+1

The move reflects optimism that markets buoyed by a surge in artificial intelligence (AI)-related growth could reward bold, leveraged bets — but also raises eyebrows among regulators, who have increasingly scrutinized the systemic risk posed by such strategies. Reuters+1

As hedge funds chase outsized returns, they also risk amplifying losses if markets turn volatile — a calculation that could reshape strategic positioning across the industry in the weeks ahead.