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

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...