29 Jul 2026

Hedge funds face demands to stump up collateral as AI stocks tumble

FT Exclusive: Wall Street banks have asked funds heavily concentrated in certain industries to provide additional collateral, highlighting the mounting fears about the scale of losses across several popular strategies Wall Street banks have demanded more collateral from hedge funds in recent weeks as a rout in AI stocks accelerates and triggers heavy losses across several popular strategies. Banks asked funds whose holdings are heavily concentrated in certain industries to provide additional collateral to keep their existing levels of leverage, according to four people familiar with the matter. The collateral demands highlight the mounting fears on Wall Street about the scale and speed of the sell-off in AI stocks over the past fortnight, which has upended a rally in a sector favoured by many funds. Source: Financial Times

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