Bank of England official warns hedge funds raise bond shock risk
The Bank of England's deputy governor warned that hedge fund activity could increase the risk of a global bond market shock.
Why it matters
Bond market turmoil would raise borrowing costs for governments, firms and households.
Background
Leveraged hedge fund strategies in government bond markets have grown large. Regulators have repeatedly flagged them as a financial stability risk.
The story so far
- Bank of England to put wildlife on new banknotes
- Bank of England to put wildlife on new banknotes
- Bank of England official warns hedge funds raise bond shock risk
Sources
- CNBC ↗Oct 18, 2:13 AM ET
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