Why are senior researchers and former officials urging the Fed to create a hedge fund bailout? At first, this seems to be about the Treasury market and concerns tied to March 2020. It doesn't take too long, however, to see what's really going on here.
Eurodollar University's Money & Macro Analysis
Brookings Treasury market dysfunction and the role of the central bank
https://www.brookings.edu/articles/treasury-market-dysfunction-and-the-role-of-the-central-bank/
Bloomberg Fed Urged to Explore Hedge Fund Bailout Tool for Basis Trade
https://www.bloomberg.com/news/articles/2025-03-27/fed-urged-to-mull-a-hedge-fund-bailout-facility-for-basis-trades
OFR Hedge Funds and the Treasury Cash-Futures Disconnect
https://www.financialresearch.gov/working-papers/files/OFRwp-21-01-hedge-funds-and-the-treasury-cash-futures-disconnect.pdf
FOMC Meeting Minutes March 15, 2020
https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20200315.pdf
https://www.eurodollar.university
Twitter: https://twitter.com/JeffSnider_EDU
What is Eurodollar University?
Jeff Snider will guide you through the realm of monetary science. Multiple episodes uploaded each week, discussing big news and key current events, the state of markets and what they are telling you, as well as historical summaries and deep background material so that you can understand what’s really going on in this eurodollar’s world.