
Awkward Pauses: Tariffs, Basis, Leverage
Money Stuff: The Podcast
Understanding Basis Trades and Market Dynamics
This chapter explores the intricacies of the basis trade and its implications for financial markets, particularly regarding contagion and deleveraging. It examines market leverage, the current scale of basis trades, and contrasts them with asset swaps while shedding light on interest rate derivatives and treasury bonds.
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