The Biggest Trade in the World?

Humungous Cash/Futures basis trade piles up.

Public expressions from regulatory authorities about the cash/futures basis suggests this trade is something to worry about. The Fed, the BIS, the Bank of England, and others, have publicly aired concerns since early-2023 that highly leveraged non-bank financial intermediaries (i.e. hedge funds) control an essential channel of finance; namely, the condu…