Along with investment banking bonuses and short selling, the dread demon of 2008’s financial crisis was leverage: too much borrowing by too many people.

For hedge funds cheap loans proved doubly disastrous last year. First, leverage amplified losses for many funds and for investors who were themselves geared. Then, the sudden removal of cheap money – as banks called in debts – led to wave after wave of forced selling by funds as they raised cash to repay loans, driving down asset prices and hitting even funds that had little borrowing.