Hedge funds have reduced borrowing and continue to fret over bank failures, cutting their over-the-counter derivative contracts by almost half, according to GlobeOp, Financial Times reports.

Clients of GlobeOp, which provides administration for about 5% of the world's hedge funds by assets, cut notional exposure on derivatives from $11,400 billion at the start of the year to $6,600 billion (£3,850 billion) at the end of September, the company said. Leverage had stood at eight to one at the end of August, but final numbers for how much it has dropped since then were not available.

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