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Fed Preps $2T Bailout as Hedge Fund Trade Implodes

ITM Trading's Photo
by ITM Trading
Thursday, Apr 10, 2025 - 1:36



While the media focuses on surface-level distractions, a deeper financial crisis is accelerating: the collapse of a $1 trillion+ leveraged trade in the U.S. Treasury market.

ITM Trading’s Taylor Kenney breaks down how hedge funds like Citadel and Millennium—leveraged up to 10:1—are being forced to unwind risky trades that once seemed safe. But as volatility spikes and liquidity vanishes, Treasuries are being dumped en masse, sending yields soaring and swap spreads collapsing.

The Fed now faces a brutal choice:

  • Print $2 trillion to bail out Wall Street

  • Or risk a complete breakdown in the Treasury market, the backbone of global finance

This isn’t just a hedge fund issue. With banks being forced to absorb toxic debt and depositor funds already at risk under bail-in policies, your 401(k), savings, and retirement security may be next in line.

Watch the full breakdown and see why this could be March 2020 all over again—only bigger.

Follow Taylor on X: Taylor Kenney

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