by Dismal-Jellyfish

Looks just like the Nellie Liang description was cutoff–here it’s in full:

“Staff at FSOC member agencies have been working to enhance monitoring systems to discover potential emerging financial stability risks posed by highly-leveraged hedge funds. Work on this regard has been focused totally on common, broad practices and activities, moderately than on individual institutions. For instance, based on a recent pilot data collection, a major share of bilateral repo transactions collateralized by Treasury securities – a key source of hedge fund leverage – seem like traded with zero haircuts.”

Gary today as well:

“The economy is adjusting to an increase in rates of interest more significant than in a long time and ongoing geopolitical risk. With such a transition of inflation and rates, it’s appropriate to remain alert to financial stability issues. Because the Federal Reserve’s recent Financial Stability Report noted, areas of concern include “vulnerabilities related to valuation pressures, borrowing by businesses and households, financial-sector leverage, and funding risks.” It also noted that “hedge fund leverage remained elevated.”

Yellen back in April:

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