Mar
27
Hedge Fund Invasion of U.S. Treasuries Puts Bond Traders at Risk
By-
Jump in volatility adds to worries in $13.3 trillion market
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Foreigners culled Treasuries for first time since 2000
Hedge funds are crowding into U.S. Treasuries, and that has bond traders bracing for more turbulence.
While the Federal Reserve doesn’t break out hedge-fund ownership, a group seen as a proxy increased its holdings to a record $1.27 trillion in the past year, according to a quarterly report released by the central bank this month. That came as foreign central banks and finance ministries, the biggest buy-and-hold owners in recent years, culled their investments for the first time on an annual basis since 2000…
Hedge Fund Invasion of U.S. Treasuries Puts Bond Traders at Risk
