"There's a worldwide meltdown in the bond markets of leveraged positions," he said.

If winning from that leveraged position makes him the industry standard, so be it.

Banks provide much of the capital the hedge funds need to take highly leveraged positions in stock, bond and currency markets.

However, no bid has emerged and hedge funds are coming under increasing pressure from prime brokers to close out existing leveraged positions.

"He's a Soros type of player who takes big, leveraged positions for his own account."

All mortgage securities have dropped as interest rates have risen, but these funds' downward moves have been magnified by their leveraged positions.

Even after the asset sales, the highly leveraged position of the company could hamper its development, Burlington said.

By taking large leveraged positions, hedge funds benefit handsomely when things go right.

Derivative contracts are leveraged positions whose value is volatile.

The highly leveraged position of many American corporations increases anxieties of what a recession would mean now.