Peloton emphasizes the dangers of leverage


By Neil Wilson

Since the start of 2008, events in financial markets seem to become more alarming almost by the day. First, we had the unbelievably rapid implosion of the $2 billion Peloton ABS fund, the biggest hedge fund failure we have yet seen outside the United States. Then we had the even more stunning near-collapse of Bear Stearns - rescued at the 11th hour by JPMorgan. And then we had a dramatic rash of losses among funds that ply relative value strategies in Japanese government bonds, such as the Endeavour Fund - which, after eight years among the