In March 2020, amid the rising COVID-19 pandemic, massive sales of US Treasury securities stretched the market to its limits. Primary dealers were unable to absorb the heavy volume, forcing the Federal Reserve to undertake unusual measures to relieve the tension. In this sobering analysis, professor Darrell Duffie identifies flaws in the foundations of the Treasury market and recommends structural upgrades that could better support current and future US government borrowing. Financial professionals will find important ideas in this authoritative examination.
About the Author
Darrell Duffie is a professor of management and finance at Stanford University.