(HedgeCo.Net) A fresh warning from Torsten Slok, chief economist at Apollo Global Management, is sending ripples through institutional trading desks and risk committees across Wall Street. In a note circulated to clients today, Slok raised renewed concerns about the scale of hedge fund leverage embedded in the U.S. Treasury market—specifically pointing to the growing risks associated with the so-called “basis trade.”
At a moment when markets are already bracing for heightened volatility tied...
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