BOE Warns of Growing Gilt Risks From Hedge Funds’ Basis Trades
The Bank of England warned about growing risks from a profitable fixed-income hedge fund strategy known as the basis trade, calling on market participants to manage their risk taking to...
By Greg Ritchie · Bloomberg Markets
The Bank of England warned about growing risks from a profitable fixed-income hedge fund strategy known as the basis trade, calling on market participants to manage their risk taking to avoid a disruptive unwinding of trades that could prompt volatility in gilts.