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Last week US Fed bailed out hedge funds that were highly leveraged. $1.5 trillion transfer to save high net worth individuals. https://www.bloomberg.com/news/ar
by myth_drannon 7y ago
Last week US Fed bailed out hedge funds that were highly leveraged. $1.5 trillion transfer to save high net worth individuals.
https://www.bloomberg.com/news/articles/2020-03-19/before-fed-acted-leverage-burned-hedge-funds-in-treasury-trade https://www.bloomberg.com/news/articles/2020-03-19/before-fe...
- jdhn 7y agoThank you for posting this, it's both informative and highly infuriating
- eyeinthepyramid 7y agoThe $1.5 trillion was a fund of one day fully collateralized loans, of which only ~$100 billion was actually used. There was no wealth transfer, just the fed following its mandate to keep interest rates on short-term loans within an acceptable band. Here's the daily totals of repo loans: https://apps.newyorkfed.org/markets/autorates/tomo-results-display?SHOWMORE=TRUE&startDate=01/01/2000&enddate=01/01/2000 https://apps.newyorkfed.org/markets/autorates/tomo-results-d...