US politician discloses largest political stock filing in history

Insider trading activity has gained a lot of steam in the previous months, as US politicians like Nancy Pelosi and Tommy Tuberville already earned millions in 2024. 

However, one politician already has them beat with a trade that could be the highest in the history of US political trades.

Representative David Trone has filed a series of purchases and sales of mainly government bonds that together amount to more than $97 million. Every trade was reported well past the deadline according to the STOCK Act, with some trades more than a year old.

According to data from the government trade tracker Nancy Pelosi Stock Tracker, purchases outweighed sales by over $70 million.

Trone is one of the wealthiest politicians in Congress, thanks to his business

Trone is the Co-founder of Total Wine, the largest independent alcohol retailer in the U.S., has 259 stores, and is valued at $2.4 billion. 

The U.S. representative for Maryland stepped down as CEO in 2015 and has focused on politics. He has spent over $50 million on campaigns and is currently running for a Senate seat, a race he is projected to lose. 

He loaned $10 million to his campaign and reported a personal income of at least $20 million last year, which is five times less than his most recently filed trade. 

What is Trone’s play with bonds?

Trone might be betting on rising bond yields. In late May, Treasury bill yields for early June maturities rose above 7%, indicating high-risk premiums. After Memorial Day, these yields fell below 6%, and prices surged. Credit default swaps on Treasury debt also decreased significantly. 

The Federal Reserve’s efforts to control inflation, potential recession risks, and regional bank pressures influence the bond market. 

Traders expect the Fed to hold rates steady in June. Despite recent volatility, Treasuries and high-quality corporate bonds remain attractive due to rising yields, especially in anticipation of a potential recession.

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