Hedge Funds Take Control of $30 Trillion Treasury Market: Is a Crash Looming?
What happens when hedge funds, known for their aggressive leverages, hold a record share of the $30 trillion Treasury market? The answer may be more than just a recipe for disaster. With a whopping $2 trillion in cash Treasury holdings and a 7% market share, hedge funds are becoming a force to be reckoned with in the world's largest bond market. But as the 10-year yield surges to its highest level since 2007 and the 30-year yield soars to its highest since 2002, regulators are sounding the alarm about the risks of a disorderly unwind. Could the increasing participation of hedge funds in the Treasury market be a ticking time bomb waiting to go off?
Tags/Hashtags: #leverage #liquidity #risk #advisorshares
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