Hedge Funds Have Never Been More Short US Banks

While we will have more to say on yesterday's bank stress test result soon - especially when it comes to the $6.4 trillion elephant in the room, namely banks' commercial real estate exposure - here are the highlights of what the Fed revealed after the close on Wednesday courtesy of Goldman's trading desk.

• Banks in aggregate on the test saw a max drawdown on stressed capital of 2.3%- this was the lowest we’ve seen in several years.