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Keeping it Simple | Ep. 25: Transitory or Purgatory?

Keeping it Simple with Simplify Asset Management

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The Fed's Hedge Funds

The Fed would have seen pay fixed on swaps. Swaps of wide and down to treasuries. And then that spread a bank or a hedge fund would take that on. When the tenure swap rate went to like negative whatever 20 a few years ago at that ratio with at the time current capital requirements, a bank could take the trade on. You had hedge funds blowing up all over the place. Why bank couldn't do it? I don't know what can Wall Street trading desk. Harley,. Do the math on how much the move the vol would have had to blow an out on swaps for you to be able to accommodate that at 20 to one leverage in a hedge fund. You

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