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

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of