Friday, 4 September 2015
Last updated 16 hours ago
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.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…