European shares see record hedge funds pressure - London Business News

Hedge funds double down on $1tn Treasury basis trade

Despite repeated warnings from regulators and global watchdogs, the $1tn Treasury basis trade – a highly leveraged arbitrage strategy popular among hedge funds – continues to expand with little sign of systemic risk, according to a report by Reuters. Positioning in US Treasury futures has climbed in recent weeks, with open interest across two-, five-, and ten-year contracts nearing record highs. This is the heart of the basis trade, where hedge …

European shares see record hedge funds pressure - London Business News

Hedge funds sold European shares in March and April, marking the highest volume in a decade. This sell-off was driven by the concerns around trade tariffs proposed by Donald Trump… The post European shares see record hedge funds pressure appeared first on London Business News