Hacker News new | ask | show | jobs
by bjornsing 1193 days ago
I'm not aware of any useful hedge for long term US government bonds. There are inflation protected bonds (TIPS), but they wouldn't have worked as a hedge in this case [1].

1. https://www.schwab.com/learn/story/treasury-inflation-protec...
1 comments
inconceivable 1193 days ago
there are interest rate swaps (insurance, basically) but i think there may be some kind of regulation against banks engaging in derivatives trading?
link
twic 1193 days ago
The "Volcker Rule" bans banks from trading derivatives for profit, but they are allowed to use them for hedging.
link