How the government got hedge funded

政府如何获得对冲基金资助

Planet Money

2025-10-11

28 分钟
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The U.S. government spends a ton of money, on everything from Medicare to roads to defense. In fact, it spends way more than it takes in. So…it borrows money, in the bond market. By selling U.S. Treasurys, basically IOUs with periodic interest payments. And for decades, people have loved to invest in Treasurys, for their safety and security.  But lately, Treasurys have started to look riskier.  In part because, in recent years, there’s a new buyer at the table: hedge funds, those loosely-regulated financial companies that invest on behalf of institutions and wealthy clients. They have started doing a special trade called the “Treasury basis trade.” And, depending on who you talk to, this trade could destabilize our entire financial system. Or help the U.S. government borrow more money. Or both.  On the latest episode: how and why are hedge funds getting into Treasurys? We follow how a Treasury travels from the nest into the hands of hedge funds. And we speak to someone from one of those hedge funds, about what they’re doing and why. Pre-order the Planet Money book, and get a free gift / Subscribe to Planet Money+ Listen free: Apple Podcasts, Spotify, the NPR app or anywhere you get podcasts. Facebook / Instagram / TikTok / Our weekly Newsletter. This episode was hosted by Mary Childs and Kenny Malone. It was produced by Willa Rubin and edited by Marianne McCune. It was fact-checked by Sierra Juarez and engineered by Jimmy Keeley and Cena Loffredo. Alex Goldmark is our Executive Producer.  Learn more about sponsor message choices: podcastchoices.com/adchoices NPR Privacy Policy
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  • Hey, Alexi Horowitz-Gazi here to ask you to pre-order the Planet Money book today.

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  • There is a basic mismatch between how much our government takes in, in revenue,

  • mostly in taxes, and what it spends on defense and Medicare and roads and that sort of thing.

  • And the reason we can sustain that structural mismatch is because we can borrow the difference.

  • We go get the money we need in the big international bond market.

  • where people and institutions with money lend it out to people and institutions who want money in exchange for periodic interest payments.

  • The US government's promise to pay back what it borrows, plus interest, that is a treasury.

  • It's an IOU and all over the world there are people and institutions who want to loan the US government money,

  • in part because it is perceived to be such a safe bet.