The Hidden Treasury Whale And How Hedge Funds and the Cayman Islands Quietly Rewired the U.S. Bond Market The revelation that hedge funds domiciled in the Cayman Islands hold roughly $1.4 trillion more in U.S. Treasuries than official data suggests is a window into how the
@onechancefreedm The Z.1s pick up the aggregate discrepancy data from TIC http://fred.stlouisfed.org/ser...
@Monetaryguy589 Exactly, the Z.1 discrepancy is effectively showing the point where repo collateral chains terminate inside FICC while economic ownership continues offshore. What’s interesting is that this distortion also bleeds into the Fed’s household sector residual, artificially boosting
@onechancefreedm Seriously, what are you talking about? It's well-documented that it wasn't the Cayman Islands buying U.S. Treasuries. You're presenting common knowledge as if it's a major revelation.
@onechancefreedm Basis trade is like picking up pennies in front of a steam roller. Small consistent returns magnified through leverage. Everything works until it doesn't. When that happens, the ugly crisis would likely be worse than 1998 LTCM collapse also due to basis trades.
@onechancefreedm It's interesting how this obscures foreign holdings and inflates U.S. macro statistics, potentially risking market stability.
@onechancefreedm Offshore ESF?!
@onechancefreedm These two are why we need to keep abortion legal.