Citadel Securities called the stock-market reset. Now it sees a leverage buildup on the horizon.

Citadel Securities strategist Scott Rubner says the U.S. stock-market “reset” is largely complete, and that falling volatility could enable a leverage buildup rather than continued deleveraging. Rubner pointed to Citadel’s message to clients that a technical reset in U.S. stocks was officially over, alongside a VIX that has hovered around 15 since climbing above 20 in late July. He said leveraged ETF assets fell more than $60 billion from a June peak to $154 billion, but if volatility keeps dropping and trends rebuild, systematic strategies may add exposure. Rubner also cited renewed retail participation, persistent demand from passive ETF investors, and corporate buyback authorizations exceeding $1 trillion.