The Rising Influence of Hedge Funds Poses Risks in the UK Debt Market

Reported about 15 hours ago

Hedge funds are increasingly dominating trading in the UK government's bond market, raising concerns about potential instability. With hedge funds accounting for 60% of trading volumes and employing various strategies in repo markets to position themselves, their significant presence may disrupt the market, affecting government borrowing costs and overall financial stability. Recent warnings from the Bank of England underscore the risks that hedge fund activities introduce, particularly in times of market stress.

Source: YAHOO

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