According to The Kobeissi Letter, institutional investors are reducing their stock exposure as the funding spread has decreased by approximately 50 basis points over recent weeks, reaching its lowest point since August 2024. This decline reflects a reduced demand for long stock exposure via futures, options, and swaps, indicating a possible shift in institutional trading strategies. Source: The Kobeissi Letter.

According to The Kobeissi Letter, institutional investors are reducing their stock exposure, as indicated by a 50 basis point decline in the funding spread over recent weeks, reaching its lowest level since August 2024. This spread measures the demand for long stock positions through futures, options, and swaps, reflecting a significant shift in institutional trading strategies.