#56: Joseph Wang On How The Fed Forever Altered The Investing Landscape
Superinvestors and the Art of Worldly Wisdom
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The Risks of Hedge Funds Buying Treasuries
The last time the Fed tried, you know, QT in 2018, it created this large leveraged basis trade in Treasuries that ended up becoming a problem. And now they're trying quantitative timing again. Well, it just seems like, I guess, of those price and sensitive buyers, right? They're sensitive to the arbitrage, but they're not sensitive to the nominal yield or anything of bonds. So at the moment, I think it's playing a stabilizing role in the cash treasury market. But there is definitely the risk as you rightly note that let's say we have some kind of blow up as we did in March 2020,.
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