Hedge Funds' Bond Market Gamble: A Growing Concern
Update: 2025-12-03
Description
Financial watchdogs are alarmed by the escalating role of hedge funds in sovereign bond markets, as these funds exploit market inefficiencies with cheap leverage and arbitrage trades. The sheer size of these leveraged bets is causing concern, as it could lead to major disruptions in case of future economic shocks, potentially damaging the entire financial system. The focus has shifted from traditional bond market vigilantes to structural fragility, where accidents could cause significant harm. The head of the Bank for International Settlements has warned that controlling hedge funds highly leveraged bets should be a top priority, with the Bank of England reporting that hedge fund borrowing against British government bonds reached nearly one hundred billion pounds last month.
The Daily News Now! — Every city. Every story. AI-powered.
Hosted on Acast. See acast.com/privacy for more information.
Comments
In Channel
Download from Google Play
Download from App Store
United States00:00
00:00
1.0x
