Hedge funds’ big role in controversial trade is missing from key Treasury data
1. Cayman hedge funds may underreport $1.4 trillion in U.S. Treasurys. 2. Basis trade poses risks for financial stability, alarming regulators since 2018. 3. Cayman funds emerged as largest foreign holders of U.S. Treasuries. 4. TIC data discrepancies create challenges for economic and financial analysis. 5. Recent trading shows DJIA falling alongside increases in Treasury holdings.