🚨 Goldman Sachs flags South Korea's leveraged ETF frenzy as risk to global markets
• Goldman Sachs says surging leveraged ETF demand from South Korea has pushed equity funding costs to unusual mid-year highs, straining dealer balance sheets.
• Single-stock leveraged ETFs linked to Samsung and SK Hynix have surged from $3 billion to about $91 billion, with 92% of holdings owned by retail investors.
• Goldman says South Korea's "insatiable" appetite for leveraged products has driven S&P 500 financing costs to their highest level since late 2024.
• Goldman Sachs says surging leveraged ETF demand from South Korea has pushed equity funding costs to unusual mid-year highs, straining dealer balance sheets.
• Single-stock leveraged ETFs linked to Samsung and SK Hynix have surged from $3 billion to about $91 billion, with 92% of holdings owned by retail investors.
• Goldman says South Korea's "insatiable" appetite for leveraged products has driven S&P 500 financing costs to their highest level since late 2024.