Over the last few months, perpetual funding rates across majors have remained low or negative for extended periods. Under these conditions, pure basis trade strategies that rely on passive collateral generate little to no revenue and yield becomes unreliable. Times like these increase the importance of collateral that produces its own yield independently of market conditions. Aegis adjusted its collateral selection in response to prolonged periods of weak basis returns. The objective was to i...

Over the last few months, perpetual funding rates across majors have remained low or negative for extended periods. Under these conditions, pure basis trade strategies that rely on passive collateral generate little to no revenue and yield becomes unreliable. Times like these increase the importance of collateral that produces its own yield independently of market conditions. Aegis adjusted its collateral selection in response to prolonged periods of weak basis returns. The objective was to i...