Hedge funds are exploiting a shadowy trade to cash in on the debt crisis and the SEC and Fed are questioning prime brokers, sources say

The basis trade involves borrowing heavily in the repurchase market and using that leverage to exploit the price gap between Treasury futures and the cash market.

Hedge funds are exploiting a shadowy trade to cash in on the debt crisis and the SEC and Fed are questioning prime brokers, sources say
The basis trade involves borrowing heavily in the repurchase market and using that leverage to exploit the price gap between Treasury futures and the cash market. Read More