Statement on the Fed’s Financial Stability Report
November 10, 2020
Washington – Managed Funds Association, the voice of the global alternative investment industry, released the following statement on the Federal Reserve’s release of its November Financial Stability Report, which takes an in-depth look into March market volatility.
“The Federal Reserve’s analysis shows that foreign investors and central banks ’sold a record amount’ of Treasury securities and hedge fund activity was not the ‘primary driver’ of market turmoil. The data show that hedge fund positions in the Treasury market were far too small to cause the volatility experienced, and some hedge funds continued to be actively engaged in the Treasury markets during this time. MFA looks forward to supporting policymakers with data and analysis as they continue to review the March turmoil and look for ways to strengthen financial market resilience,” said Michael Pedroni, Executive Vice President & Managing Director, Head of International Affairs.