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Fed Urged To Bail Out Hedge Funds During Next Market Crash: Trillions In Basis Trades At Risk

Tyler Durden's Photo
by Tyler Durden
Authored...

Back in September 2019, when the Fed's aggressive tightening led to a sudden, catastrophic "repocalypse" when the lack of liquidity pushed overnight rates orders of magnitude higher and crushed levered Treasury cash-swap pair trades reliant on ultra-cheap funding (also known as basis trades