New York Fed probes risks as hedge funds fill void left by pension funds in Treasurys

New York Fed: The Federal Reserve Bank of New York is one of the twelve regional banks in the Federal Reserve System and plays a central role in conducting monetary policy, operating payment systems, and supervising major financial institutions. It maintains close oversight of the Treasury market as part of its broader mandate to promote financial stability. In this news, its markets group staff have been reaching out to investors and participants to assess risks from shifts in Treasury market dynamics involving hedge funds and pension funds. Regulatory Outreach: New York Fed staffers have conducted informal inquiries with market participants to understand how evolving investor roles may affect Treasury market functioning. Market Structure Shift: Pension funds have reduced their Treasury holdings, prompting greater involvement by hedge funds using relative value strategies.