Debt Chiefs From 3 Countries Praise Hedge Funds in Bond Markets as Regulators Warn on Leverage
Updated
Updated · Bloomberg · Jun 16
Debt Chiefs From 3 Countries Praise Hedge Funds in Bond Markets as Regulators Warn on Leverage
1 articles · Updated · Bloomberg · Jun 16
Summary
Canadian, German and Italian debt-office heads said hedge funds are improving liquidity and market functioning in government bond markets, signaling a warmer official view of their growing role.
The endorsement, delivered Tuesday at the FT Global Bond Summit in London, contrasts with recent regulatory concerns that leveraged hedge fund strategies could threaten financial stability.
That split highlights a broader debate over whether hedge funds are mainly a market-risk amplifier or a useful source of trading activity in sovereign debt.