In the Media

Citadel Securities’ Frank Flight, who just last month warned of a “cruel summer” for US bond investors, now sees the balance of risks tilted toward a rally, citing crowded bearish positioning and improving inflation data.

The Treasury Department’s efforts to restrain long-term borrowing costs through bond buybacks amount to “financial repression” that risks weakening the dollar and fueling inflation, according to Citadel Securities.

The Federal Reserve’s reluctance to tighten monetary policy after a prolonged period of above-target inflation is keeping long-term bond yields at multiyear highs, posing a broader risk to markets, according to Citadel Securities.

Citadel Securities, the market-making firm founded by billionaire Ken Griffin, on Monday urged the U.S. Securities and Exchange Commission to reconsider a proposal to scrap a longstanding Wall Street regulation requiring the execution of stock trades at the best available price.

The leverage reset has largely run its course, creating room for systematic strategies to add exposure as volatility falls,” said Scott Rubner, head of equity and derivatives strategy at Citadel Securities. “Breadth is improving, correlation is near record lows, and investors are increasingly willing to pay for upside.

The credit markets may have had their fill of record borrowing for data centers, but tech companies aren’t done yet. Citadel Securities LLC is forecasting another $500 billion-plus of debt in the public and private markets by 2028 to bankroll the chips that go inside the artificial intelligence campuses.