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LONDON DAILY ARCHIVE

UK Warns of Bond Market Risk from Hedge Fund Leverage

Bank of England highlights potential systemic threat

09 July 2025 · 23:52 UTC

The Bank of England has issued a warning about the potential risks to the UK bond market posed by high levels of hedge fund leverage.

Regulators say the growing use of derivatives could amplify market shocks, urging tighter oversight to maintain financial stability.