QE or Not, World’s Most Elite Bond Club Is Getting Its Mojo Back
- Primary dealers to benefit with Fed as captive Treasury buyer
- Citadel Securities lays groundwork for possible membership
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Regardless of what you think about the Federal Reserve’s decision to get back into the business of buying Treasuries, one thing is clear: It’s a good time to be a primary dealer.
While this elite-bond trading club may never fully regain its former glory, the prospect of the Fed once again purchasing hundreds of billions of dollars worth of U.S. government debt is set to be a boon for the select group of banks and dealers at the center of the $16.3 trillion Treasury market.