1 of 1
Story summary
- Hedge funds now account for one-third of gilt trades in the UK.
- They profit by leveraging government debt, borrowing £99.9 billion from banks as of November.
- This represents a tenfold increase from the previous year.
- Chris Coghlan, Liberal Democrat Member of Parliament (MP), says 90% of net borrowing comes from a few US hedge funds.
- Regulators are weighing measures, including lower asset valuations for repo transactions.
