Collateral seekers could replace Fed as chief Treasurys buyer

06/10/2013 | Bloomberg

Concern about the Federal Reserve's pulling back on its purchases of Treasurys may be alleviated by new collateral rules for insurers, hedge funds and others, according to this article. The $633 trillion over-the-counter derivatives market will seek trillions of dollars' worth of Treasurys to satisfy collateral rules, observers say. "This is going to be a new, very powerful engine that drives demand for Treasurys," said Ted Leveroni of Omgeo, a trade processor.

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