Hedge funds are re-engaging with the popular swap spread widener trade, which bets that Treasuries will outperform swaps of the same maturity, as the gap between US Treasury yields and interest-rate swap rates continues to expand, according to a report by Bloomberg.
The strategy has regained momentum after early-week volatility briefly threatened the trend. Bond yields had jumped following a sell-off in Japanese government bonds and heightened geopolitical tensions between the US and Europe over...
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