Last year it was just over $1 trillion. Now it is $1.35 trillion. Zero regulatory oversight, zero fears of blow up because hedge funds know well the Fed will bail them out again:
Millennium: $505.9BN
Citadel: $397.1BN
Balyasny: $248.1BN
Point72: $203.1BN
Total: $1.35TN
This is where the next big market crash will start, and why the Fed is being urged to prepare with a basis trade bailout facility
The last time the Fed bailed out hedge fund basis trades was Sept 2019 and March 2020. Since then, regulatory assets among the Big multistrat funds have nearly 3x-ed.
