Fed Preps $2T Bailout as Hedge Fund Trade Implodes
ITM Trading’s Taylor Kenney breaks down how hedge funds like Citadel and Millennium—leveraged up to 10:1—are being forced to unwind risky trades that once seemed safe. But as volatility spikes and liquidity vanishes, Treasuries are being dumped en masse, sending yields soaring and swap spreads collapsing.
The Fed now faces a brutal choice:
Print $2 trillion to bail out Wall Street
Or risk a complete breakdown in the Treasury market, the backbone of global finance
https://www.zerohedge.com/news/2025-04-09/fed-preps-2t-bailout-hedge-fund-trade-implodes