Yesha Yadav on the Galactic Risks of the US Treasury Markets
Macro Hive Conversations With Bilal Hafeez
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Central Clearing and All to All Trading
In the case of central clearing, central clearing is a response to counterparty risk. In treasuries, it's been a very primary dealer orientated market for the most part. But as we discussed, this is a market now that's becoming more open to having hedge funds and HFT players. We have around $4 trillion worth of bilateral repose outstanding. Around 60 to 70% of them are backed by treasuries. Who wants to take on that level of counterparty risk?
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