Short bets against funds that track major US indexes have declined to record lows, JPMorgan said.
As the S&P 500 and Nasdaq have hit a streak of record highs this year, short interest in funds that track the indexes has dropped, the bank said.
AdvertisementFirst, short bets are expensive to maintain when a stock or fund is climbing, a risk that's especially relevant in today's bull run.
Second, regulators have added restraints to short selling, by mandating transparency and adding costs to short sellers that target equities, JPMorgan said.
According to JPMorgan, short positions are also disappearing from individual stocks, with a clear decline in the top seven leading equities.
Persons:
—, Nikolaos Panigirtzoglou, Jim Chanos
Organizations:
JPMorgan, Service, Nasdaq