# Leverage limits

`kaal:entity:leverage-limits`

**Status.** derived

This node is assembled mechanically from the 2 claims that carry the concept tag `leverage-limits`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

2 claims across 2 works, 2014 to 2016.

**2014**

- [2470008-013](https://wulfkaal.github.io/claims/2470008-013) [mechanism/argued] -- The absence of financial market repercussions from the Amaranth failure suggests that indirect regulation of private funds, achieved by having regulators press banks to limit leverage extended to their fund clients, worked.
  > The lack of financial market repercussion after the Amaranth failure seems to suggest that this approach was successful.
  Wulf A. Kaal, The Systemic Risk of Private Funds after the Dodd-Frank Act (2014). SSRN: https://ssrn.com/abstract=2470008

**2016**

- [2748096-007](https://wulfkaal.github.io/claims/2748096-007) [mechanism/argued] -- Post-LTCM counterparty credit risk management, in which regulators pressed banks to monitor and limit the leverage of their hedge fund clients, appears to have worked: the Amaranth failure produced no financial market repercussions.
  > The lack of financial market repercussions after the Amaranth failure seems to suggest that this approach has been successful.
  Wulf A. Kaal, Timothy A. Krause, Hedge Funds and Systemic Risk (2016). SSRN: https://ssrn.com/abstract=2748096

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/leverage-limits.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.