​Will $1 Trillion In Treasury Basis Trades Blow Up The Clearinghouses – Tyler Durden

Will $1 Trillion In Treasury Basis Trades Blow Up The Clearinghouses By Russell Clark of Capital Flows and Asset Markets Reading the excellent article by Brian Meehan of Bloomberg Intelligence, “Basis Trade Growth Is Massive”, I was reminded just how stupid clearinghouses really are. If you ever meet a head of a clearinghouse, I can assure it was not brains that got them to this key position in global finance. As the article points out, there is now a $1.1 trillion notional short position in US treasury futures. You should not read this as the market being bearish on treasuries.…  — Continue at ZeroHedge News : Read More