Hedge funds become essential players in the $1-trillion-a-day Treasury market
By
The Economist
A respectable bake. You'd come back tomorrow for another.
Summary
The article discusses the enormous scale of the U.S. Treasury market, where $1 trillion in securities trade daily and trillions more are used as collateral. It highlights that as traditional buyers' interest wanes, the market increasingly depends on hedge funds and other risky investors, suggesting a precarious dynamic often described as "collecting pennies in front of a steamroller."
Key quotes
· 3 pulledSome $1trn in securities change hands each day.
Trillions more are used as collateral for short-term loans.
Collecting pennies in front of a steamroller
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