The basis trade in US treasuries has grown to approximately $1 trillion in size, roughly double the level in March 2020, and primary dealer balance sheets are more congested than during the pandemic, creating systemic risk from basis trade unwind larger than before.
factualpending
Speaker
Simon WhiteEvidence Quote
“the trade is probably twice the size...something like a trillion dollars...dealer balance sheets, primary dealers are more congested than they were back then [33:21]”
Created: 8/11/2026, 7:06:30 AM
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