# kaal:claim:2714974-025

**Claim.** There are no legal limits on hedge fund leverage; the only constraint comes from market discipline supplied by creditors and counterparties through interest rates, credit availability, credit limits, initial margin, and credit spreads.

**Type.** condition  **Support.** asserted

**Holds when.**

- contrasts with registered investment companies, which face direct statutory limits

**Source quote.**

> Any limits on a hedge fund's use of leverage come from the market discipline provided by creditors and counterparties.

**From.** Kaal and Oesterle, *The History of Hedge Fund Regulation in the United States* (2016), Leverage, page 22

**Cite as.** Kaal and Oesterle, The History of Hedge Fund Regulation in the United States (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2714974

**Verify.** sha256 of source PDF `7764601d3ed5bb056b58949e8411eff9dfb9855f143719062030c980c5fa801b` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Oesterle%20-%202016%20-%20The%20History%20of%20Hedge%20Fund%20Regulation%20in%20the%20United%20States.pdf

**Topics.** economics, risk-and-incentives

**Keywords.** leverage, market-discipline, counterparty-risk, credit-terms

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/3405660-010

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.