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Financial Arbitrage | Hedge Funds Play With Fire – and it could topple the entire system

Financial Arbitrage | Hedge Funds Play With Fire – and it could topple the entire system

 
 
00:00 / 00:17:59
 
1X
 

Hedge funds, especially “Relative Value” hedge funds, engage in 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 to blow up.

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