Institutional investors are increasing their stock exposure: Funding spreads jumped +8 basis points over the last week, nearing the highest since December 2024. This metric tracks institutional demand for long stock exposure through futures, options, and swaps. Rising spreads mean institutional investors are willing to pay higher costs to hold equity positions, signaling stronger risk appetite. Since May 2025, funding spreads have risen a massive +40 basis points. This has also helped push the S&P 500 to all-time highs, similar to 2024. Institutional risk appetite is growing.(The Kobeissi Letter)