Reuters: Hedge fund dominance latest risk for febrile UK debt markets

Hedge funds accounted for 60% of UK government bond trading volume in January and February, raising fresh questions about repo market stability and systemic risks in the gilt market.

Co-CIO David Aspell spoke with Reuters Nell Mooney Mackenzie about how large hedge fund activity is shaping UK rates, saying, “UK rates markets sometimes trade quite chaotically because large hedge funds push them around and at times there’s not that much real money in them relative to the hedge funds.”

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