Hedge funds built a $1.2 trillion Treasury trade on money they have to keep borrowing
Companies can own a mountain of US government debt without betting that bond prices will rise. Hedge funds buy Treasury securities and sell futures against them to collect a small pricing gap, borrowing most of the purchase money to make the return worthwhile. The government gets another buyer, whose interest lasts as long as the […] The post Hedge funds built a $1.2 trillion Treasury trade on money they have to keep borrowing appeared first on CryptoSlate.
Key Takeaways
- Companies can own a mountain of US government debt without betting that bond prices will rise.
- Hedge funds buy Treasury securities and sell futures against them to collect a small pricing gap, borrowing most of the purchase money to make the return worthwhile.
- The government gets another buyer, whose interest lasts as long as the […] The post Hedge funds built a $1.2 trillion Treasury trade on money they have to keep borrowing appeared first on CryptoSlate.
Summary generated by IndiCrypto from CryptoSlate. IndiCrypto is a news aggregator and does not provide investment advice. Read the original article for full context.
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