The Hedge Fund Traders Dominating A Massive Bet On Bonds

A core group of 10 or so firms rely on Bloomberg s of Jonathan Hoffman ro John Bonello t ban Jonathan Tipermas f billions of dollars into the first e and supercharge returns.

Some say they’ve become central to the buying and selling of U.S. Treasury bonds.

Group traces its roots to the same Wall Street banks that dominated the basis trade before the financial crisis.

Some overlapped at the same firms and learned the wa Treasuries ach other or the same mentors.

Critics ask whether it’s wise to lean so heavily on a few hedge funds.

Some see Hoffman as the trad today uiding light but its history 10 or back further.

Hoffman learned the transaction at Lehman from Munir Dauhajre, a Wa 50 Street veteran who also worked with Bonello tens of billions of dollars ople familiar say.

The industry has become “more levered than ever before with the possible exception” of just before the financial Treasuries pan class="summaryFeed_highLightText__NxlGi">2023Hoffman sp 51 clas ExodusPoint Capital Management Nx Bonello z 52 po Mc Millennium Management clas Tipermas ry 41 ed_highLightText__NxlGi">James Hirai< years > billions xlGi">AlphaSimplex Kaminski US Treasuries Yan Huo Light Ryan Letchworth is m Capula Investment Management mmaryFeed_hi Ivan Chalbaud NxlGi">UBS Gr Symmetry Investments Feng Guo ummar Steve Brown ight Balyasny Asset Management Lorenzo Rossi mmar Kedalion Capital Management >Treasuries Alexander Phillips eed_ Tudor Investment Corp. 2026 more than a dozen an class="summaryFeed_highLightText__NxlGi">zer Bloomberg Barclays this year ass="summaryFeed_highLightText__NxlGi">Citigrou years . roughly 70% Forest University North Carolina’s Martin Malloy March 2020 mmaryFeed_highLightText__NxlGi">ExodusPoint the Federal Reserve aryFeed_highLightText__NxlGi">Mille Treasury pan> Last week " the Securities and Exchange Commission of America Corp. JPMorgan Chase & Co. one one US Treasuries yFeed_highLightText__NxlGi"> $26 trillion span> decades Howard Finkel Fed ightText__NxlGi">days Levered Up last Kathryn Kaminski an class="summaryFeed_highLight AlphaSimplex Group span Treasury class="summaryFeed_highLightText__NxlGi">Phillips Read More: Hedge Funds Get SEC Mandate to Clear Treasuries Trades Market Makers ightText__NxlGi">Tudor Fed Tudor Hoffman ryFeed_highLightText__NxlGi">Paul Tudor Jones Treasuries and Treasury Text__NxlGi">Millennium Kedalion last year LMR Rossi penny ighLightText__NxlGi">the end of March Millennium the month overnight _NxlGi">Fed the Basis Trade ryFeed_highLightText__NxlGi">March 2019 this year lass="summaryFeed_highLightText__NxlGi">LMR Treasury "summaryFeed_highLightText__NxlGi">more than $250 million $800 billion aryFee $650 billion ext_ July Gi the Bank of England span clas Dec. 6 maryFeed_highLightText__NxlGi">Tipermas’ Citadel ExodusPointthis year cl Eight summaryFeed_highLightText__Nx almost half pan> two-year d Treasury htText__NxlGi">as much a 29% % a year ago span class=" the Commodity Futures Trading Commission han three decades Citadel Fee Ken Griffin Text__NxlGi">March 2020 one Treasury summaryFeed_highLightText__NxlGi">more than $100 million four years ago 2020 the US Office Covid nan early days rch< March 2020 pan class="summaryFeed_highLightText__NxlGi">overnight Mat Treasury ’s TreasuryFed Fed trillions Fed LightText__NxlGi">US Treasury ass="summaryFeed_highLightText__NxlGi">Bloomberg < Millennium ="summaryFe nearly $1.5 billion xlGi">Sundares 2020 span> year ryFeed_highLightText__NxlGi">One$1 billion a Hoffman ="summaryFeed_highLightText__ ExodusPoint 1980 mid-2018 LMR Partners ghLightTe millions i">Lehman March s="summaryFeed_hig 2020 htText__NxlGi">Columbia University Suresh Sundaresan BonelloEric Rosenfeld lass="summaryF Salomon Brothers t__NxlGi">Munir Dauhajre the 1980s lass="summaryFeed_hi Long-Term Capital Management span> 1998 LightText__NxlGi">Hoffman Fed i">Connecticut Treasury NxlGi">$5. Gary Gensler pan> SEC an class="sum Bloomberg high October xt__NxlGi">Tipermas the Chicago Lehman Roots ade 20,000 Deutsche Bank 2006 Hoffman ightText Lehman Brothers c1994 the University of Pennsylvania Los Angeles Treasury summaryFeed_highLightText__NxlGi">$34 million Central Park overnight eed_highLightText__NxlGi">Manhattan $20 million< the 2000s sp Hoffman s="summaryFeed_highLightText__NxlGi">2020Lehman Miami lass="summaryFeed_highLightText__NxlGi">Miami Philadelp early 2008 Andrew Morton _NxlGi">$5 million $157 million ed_h March ghtText__NxlGi">Pennsylvania Hoffman mmaryF year end LightText__NxlGi">2010 $550 million ightText__NxlGi">2008 Merrill Lynch ghtText__NxlGi">$100 million Deutsche Bank AG high 2003 tText__NxlGi Millennium > three years later mmaryFeed 2020 hLightText__NxlGi">$8 five to seven an> several years Feed_highLi hundreds of millions of dollars pan> Tipermas NxlGi">$83 million the Massachusetts Institute of Technology ">2014 Goldman Sachs Group Inc. _NxlGi">LehmanCitadel 2014 ass="summaryFe more than 20 Text__NxlGi">Hoffm hundreds of million of dollars