Reported 4 months ago
The article discusses how Wall Street's hedging trades are at risk due to an event-filled week, marked by Treasury auctions causing bond yields to fluctuate, impacting balanced portfolios and hedging strategies. With the Federal Reserve not planning to cut interest rates soon, the S&P 500 broke its five-week climb, while bonds fell despite mild inflation data. The article highlights challenges in diversifying assets and the importance of alternative strategies amid changing market dynamics, indicating a shift towards absolute-return trades for risk mitigation.
Source: YAHOO