El-Erian: Highly-leveraged investors face 'tipping point' despite low market volatility

Growing use of leverage in stable market

Mike Sheen
clock
El-Erian warns of risk of high leverage
Image:

El-Erian warns of risk of high leverage

The growing use of leverage amid calm markets and rising stock prices could ultimately hurt investors, according to Allianz SE's chief economic adviser Mohamed El-Erian.

The growing use of leverage amid calm markets and rising stock prices could ultimately hurt investors, according to Allianz SE's chief economic adviser Mohamed El-Erian. Building up risk on the assumption...

To continue reading this article...

Join Investment week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space

  • Get ahead of regulatory and technological changes affecting fund management

  • Important and breaking news stories selected by the editors delivered straight to your inbox each day

  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts

  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

Market Movers Blog: OECD warns Omicron may hurt already fragile recovery

Market Movers Blog: OECD warns Omicron may hurt already fragile recovery

Latest news and analysis

Investment Week
clock 01 December 2021 • 1 min read
All the latest news, analysis and content about the Covid-19 outbreak

Coronavirus Blog: Moderna CEO warns of 'material drop' in effectiveness of vaccines against Omicron as UK extends booster programmes - reports

Latest news and reaction

Investment Week
clock 30 November 2021 • 1 min read
US policy decisions could impact global markets
US

How US policy could impact global markets

Global economy likely to suffer growth slowdown as stimulus policy reversed

clock 29 November 2021 • 2 min read
Trustpilot