Hedge Funds Treasuries
Hedge Funds Make Up 1/5 of Trading Treasury Bond Market
Hedge funds have dramatically increased their trading in the Treasuries markets. Hedge funds now reportedly account for a fifth of all trading in the $10,000bn US Treasury bond market. This is a huge change as funds accounted for just 3% of all trades in this sector in 2009.
Trading in the usually sedate Treasuries market has spiked as volatility has increased and fund managers have sensed opportunities to make large amounts of money as a result of the Federal Reserve’s unorthodox monetary policies.
The movement highlights the extent to which the US Treasuries market remains central to investor sentiment on the global economic environment.
In spite of the increased activity, however, trading has been far from easy for many large so-called macro managers, who aim to profit from shifts in global economic balances.
The average global macro hedge fund is down 0.74 per cent so far this year, according to Hedge Fund Research. Source
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The movement highlights the extent to which the US Treasuries market remains central to investor sentiment on the global economic environment.
In spite of the increased activity, however, trading has been far from easy for many large so-called macro managers, who aim to profit from shifts in global economic balances.
The average global macro hedge fund is down 0.74 per cent so far this year, according to Hedge Fund Research. Source