Statement on March Treasury Market Volatility

November 12, 2020

Washington –  Managed Funds Association Executive Vice President and Managing Director for International Affairs Michael Pedroni today issued the following statement on March market volatility:

“Hedge funds were resilient in March and there is no evidence that hedge fund positions posed a systemic risk to the financial system. Hedge funds, including those that buy and sell Treasuries, were able to withstand the force and speed of the Treasury market turmoil that was driven largely by a more than $400 billion selloff by foreign central banks and other foreign investors. The data are clear that hedge fund positions in the Treasury market were too small to cause the volatility experienced during this time, which is why the Federal Reserve concluded that the evidence is ‘weak’ that funds were the ‘primary driver’ of the turmoil in March.”

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