Hedge Funds Jump Into T-Bonds With Both Feet

Aug 12 2010 | 12:59pm ET

Hedge funds have increased their U.S. Treasury bonds trading by a factor of almost seven this year, aiming to profit from the usually sedate market.

Hedge funds account for 20% of T-bond trading this year, up from 3% last year, according to Greenwich Associates. The Financial Times reports the spike in T-bond trading stems from both their growing volatility and pricing inefficiencies stemming from the Federal Reserve’s current monetary policy.

Those pricing inefficiencies—caused by the combination of larger issuance and quantitative easing—have created a slew of opportunities for relative value hedge funds, according to the FT.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note