Comments by "Frederick Miles" (@frederickmiles8815) on "What Is The Basis Trade (This Is A Systemic Risk To The Financial System)" video.

  1. Not quite - Kenny is both a fund and largest MM. Over 60+ offshore subsidiaries, uber complex Ponzi scheme. What scares us about Kenny is unrealized losses due to assets sold not yet purchased (his off exchange OTC numbers are even worse then public - closed funds). Like Soros he has deep political connections and amazing tech (ABC Strategy - narrow AI) - his short positions on treasuries would make him the lehman/ltcm of this cycle. As supposedly he was told - 'we dont care how much exposure BofA and BNY have' - Kenny isnt getting a bailout from Fed (window access and a line) like he did in Q1 2020. He is able to screw retail but he will not be allowed to play those games with treasury markets (that is the adult conversation behind closed doors - no one cares about the rfr basis trade - especially Kenny and his bankers). If your quick with it and understand have access to the right 'non-ATS' checkout the perpetual swaps, bullet swaps, etc tied to Citadel and their official and unofficial subsidiaries - its a mess. He can never close some of those positions without blowing up - his biggest wound is short tbonds. And like Dalio he doesnt understand where actual dollars comes from.
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