Session 1, Spring 2026 CPE Money and Finance Seminar Series
Treasury market stability and the big whale: Hedge funds and their role of liquidity provision in tumultuous times
This seminar session examines recent efforts to reform the U.S. Treasury market, including regulatory attempts to gather information on hedge-fund leverage following episodes of market disruption. It considers the changing role of hedge funds as important liquidity providers and quasi-dealers in Treasury trading, while also using Treasury bills in leveraged basis trades. The discussion asks how these developments reshape the relationship between hedge funds and broker-dealers and what they imply for the stability of the Treasury market itself.
Speakers:
Nellie Liang, Senior Fellow in The Hutchins Center on Fiscal and Monetary Policy, Brookings Institution; former Undersecretary for Domestic Finance, U.S. Treasury Department
Stefano Sgambati, Senior Lecturer of International Political Economy, City St George's, University of London
