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Month: February 2020

What Is Arbitrage? Hedge Funds Are Picking Up Pennies In Front Of A Steamroller

Hedge funds, especially “Relative Value” hedge funds, engage in something called financial arbitrage. Due to the sheer size of their exposure to currencies and bond markets, they put the entire financial system at risk. In normal market conditions, everything is fine. But rare events aren’t all that rare, and “risk-free” trades usually have the capacity […]

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