Hedge funds trim US swap spreads on tariff decision
Investors cut back asset swap positions as Supreme Court ruling reignites deficit concerns
The US Supreme Court’s decision to strike down the Trump administration’s tariff regime on February 20 put more pressure on the popular US swap spread trade, sparking some deleveraging from hedge funds that had lost confidence in a trade that had underperformed in recent months.
Ten-year swap spreads – a play on the difference between yields on US Treasuries versus interest rate swaps – had
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