(Bloomberg) -- A small group of funds has accumulated such large short wagers in the Treasury market that they could destabilize the broader financial system...
-- A small group of funds has accumulated such large short wagers in the Treasury market that they could destabilize the broader financial system during times of stress, according to the International Monetary Fund .“A concentration of vulnerability has built up, as a handful of highly leveraged funds account for most of the short positions in Treasury futures,” the IMF said in its Global Financial Stability Report released this week.
The Securities and Exchange Commission has been working to rein in basis trades and increase the transparency of hedge funds’ exposure to the strategy. In December, the SEC required the funds and brokerages to centrally clear far more of their US Treasuries transactions, a move to bolster oversight of basis trades.
Despite that unwinding, the IMF noted the short positions of leveraged funds remain large, which means they may still loom as a risk. -- Goldman Sachs Group Inc. is in the market with investment-grade bonds, just two days after issuing perpetual notes, as the bank taps investors following its surprisingly strong first-quarter results.
Baby boomers may have had the best financial start of all the generations -- coming of age when salaries kept up with the cost of living and goods and services were affordable -- but that doesn't mean...Complaint Asks the FBI to Probe Trump Claims on a $50 Million Loan
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