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DB / Deutsche Bank sees risk in rapid unwinding of leveraged Treasury trades

Deutsche Bank sees risk in rapid unwinding of leveraged Treasury trades
Hedge funds' growing use of leveraged positions in the $25.1 trillion Treasury market is back in the spotlight again, this time with one major Wall Street firm warning of what might happen if those trades are rapidly unwound.In a note released on Tuesday, strategist Steven Zeng of Deutsche Bank DB, -4.27% said such a scenario would essentially lead to a repeat of the Treasury market volatility that occurred in March 2020 and is something that the Federal Reserve “wants to avoid.” Read More
Posted: Sep 5 2023, 15:30
Author Name: Market Watch
Views: 042174

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