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Cayman Islands Tops U.S. Treasury Holdings as Fed Exposes $1.4 Trillion Data Gap

Blockonomi|Brenda Mary|
🤖AI Summary

Fed research reveals a massive $1.4 trillion undercount in U.S. Treasury holdings data, with the Cayman Islands emerging as the largest foreign holder of Treasuries. Hedge funds domiciled in the Cayman Islands absorbed 37% of all net Treasury issuance between 2022 and 2024, highlighting significant gaps in financial transparency.

Key Takeaways
  • The Cayman Islands officially holds $427 billion in U.S. Treasuries, but the true figure is significantly higher according to Fed research.
  • Fed researchers identified a $1.4 trillion undercount in Treasury holdings data, revealing major transparency gaps.
  • The Cayman Islands has become the largest foreign holder of U.S. Treasuries when accounting for the data discrepancy.
  • Hedge funds based in the Cayman Islands absorbed 37% of all net Treasury issuance from 2022 to 2024.
  • This revelation highlights the outsized influence of offshore financial centers in U.S. debt markets.
Read Original →via Blockonomi
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