Simply Put
Jonathan Wallen on How Hedge Funds Seized the Treasury Market
34:10
Hedge funds have absorbed much of the recent surge in Treasury issuance and now own a larger share of the market than domestic private banks. Unlike other market actors that are less price sensitive and hold the securities to maturity, hedge funds engage in highly leveraged trades over short time horizons that, in turn, exacerbate episodes of bond market volatility. With Fed officials hoping to…