Discussion Paper

Hedge Fund Treasury Exposures, Repo, and Margining


Abstract: Hedge funds have become among the most active participants in U.S. Treasury (UST) markets over the past decade. As a result, the financial stability vulnerabilities associated with their leveraged Treasury market exposures, which are facilitated by low or zero haircuts on their Treasury repo borrowing, have become more prominent.

https://doi.org/10.17016/2380-7172.3377

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Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2023-09-08

Number: 2023-09-08-3