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Treasury basis – A risky trade hiding in the Treasury market
Episode 82
Published 11 months, 2 weeks ago
Description
It’s one of the riskiest trades hiding in plain sight: the Treasury basis trade.
In today’s episode of The Weekly Fix, Neil Sun, Portfolio Manager on the BlueBay US Fixed Income team, unpacks the Treasury basis trade and how it works, why it’s grown to a $600B+ behemoth, and what could go wrong. In a market built on leverage, even small cracks can cause big waves.
Neil explains why regulators are watching closely, and what investors should monitor going forward.