View: Chip and Storage Stocks’ Trading or TRS Financing Costs Hit Record Highs

BlockBeats News, August 24th, ZeroHedge reported that a phase top in chip and storage-related stock trading coincided with the day the Total Return Swap (TRS) financing cost hit a record high. It believes that the previous market narrative behind the rise of the AI, chip, and storage sectors may have masked a significant amount of leverage-driven factors, where institutions such as Situational Awareness engaged in high-leverage trading through tools like TRS, further amplifying the volatility of related assets as the market turned.

Relevant data shows that Situational Awareness had previously experienced a sharp retreat due to high-leverage positions and was forced to liquidate a large number of tech stock holdings, indicating that the rise in certain popular chip and AI trades may not have been entirely driven by fundamentals.