The Hedge Funds Betting Big on U.S. Treasuries By Quiver Quantitative

Quiver Quantitative – In the high-stakes world of government debt trading, a few elite hedge fund traders are making waves with a massive wager known as the “basis trade.” This strategy, focusing on the slight price discrepancies between U.S. Treasuries and their corresponding futures is dominated by a select group within the industry. Key figures include Jonathan Hoffman of ExodusPoint Capital Management, John Bonello at Millennium Management, and Jonathan Tipermas of Citadel, who have leveraged their firms’ resources to drive billions in profits.

These traders, part of an exclusive group of around ten firms, engage in the basis trade with an exceptional degree of leverage, often borrowing up to 50 times their own investment. This approach allows them to inject billions into the market, amplifying returns and making them central figures in the…