‼️Hedge funds have never owned so much US debt:



Hedge funds now hold a record 8% of all outstanding US Treasuries, out of a total market of $31 trillion.

Holdings have MORE THAN DOUBLED since 2022.

To hold these positions, hedge funds borrow heavily through repo markets and prime brokerage lines, which are short-term loans backed by Treasuries. Combined, this borrowing now exceeds $6 trillion.

Overall, hedge funds provide significant liquidity through positions in Treasuries, futures, and related derivatives.

Any forced unwind of these leveraged positions could send shockwaves through global bond and equity markets.

This is something notable to watch.

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