Primary Dealers have reduced their fixed income portfolio hedging at the worst possible time. They are facing a deluge of supply in the months ahead, and they are not well hedged. They have reduced leverage a bit, but this doesn’t appear to be enough to help them through the supply tsunami that is headed their way. Non-subscribers, click here for access.
Subscribers, click here to download the report.
Here’s what this means for stocks and bonds, and what you should do about it. Non-subscribers, click here for access.
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