Trillions of dollars stowed away in short-term US Treasuries are looking anything but safe as the debt ceiling deadline edges closer. That’s prompted an ETF giant to warn that one of the year’s hottest haven trades could be about to unwind — and throw beleaguered regional banks a lifeline.
Lori Heinel, who oversees the biggest short-term US Treasury ETF as chief-investment officer at State Street Global Advisors, a $3.6 trillion asset manager, is avoiding short-dated US debt in State Street’s actively-managed funds as a showdown in Washington over raising the US government’s $31.4 trillion borrowing limit enters its final days.
Read More : Regional banks could potentially benefit from the debt showdown, according to State Street