Wow, just recorded one of most revealing interviews of my life with the ultimate expert on interest rate hedging (issue at heart of bank turmoil).

He said hedges at many U.S. banks were nowhere close to offsetting unrealized losses on securities (incl.some big banks)

A thread.
The primary reason bond ETFs are selling off is **NOT** due to credit stress.

It's interest rate risk. Anticipation of rate hikes by the Fed is inflicting damage to fixed income all across the curve. This is DIFFERENT than credit spreads blowing out

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