Treasuries are prominent throughout levered strategies. They are also integral to scores of hedging strategies. Importantly, systemic deleveraging risks quickly escalate when Treasury yields surge in the face of “risk off” market dynamics.
Perspectives
TSP & Vanguard Smart Investor Posts
Mounting Irrationality
The usual threats and coercion will now be met with staunch resistance and resolve. The President and his inner circle, envisaging world dominance, never contemplated such a breakneck loss of power.
Recalling 1991
With risk aversion gathering momentum, deleveraging looms.