Clarification -- the chart shows gross notional exposure in both directions, which implies that hedge fund holdings are still smaller than official holdings h/t @Alea_ 1/2
Brad Setser
Brad SetserDec 3, 02:40
Striking chart from the FT's Martin Wolf. If correct, hedge fund holdings of US Treasuries are approaching the holdings of reserve managers in size, and growing much more quickly 1/2
"Gross notional exposure is the sum of the absolute value of long and short exposures, including via holdings of cash securities and through derivatives. US data include Treasuries and agency ... bonds" Interesting paper 2/2
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