Regulators Should Limit Leverage for 'Shadow Banks' in Core Markets ...

Regulators Should Limit Leverage for 'Shadow Banks' in Core Markets ...

BoE flags gilt market risk from hedge fund leverage

The Bank of England has warned that excessive leverage among hedge funds poses a growing threat to the UK government bond market, raising fears of a repeat of the 2022 gilt market crisis triggered during Liz Truss’s brief premiership, according to a report by Bloomberg. In its latest Financial Stability Report, the central bank highlighted that hedge funds have accumulated a record £77bn ($105bn) of leverage through gilt repo trades – primarily …

FSB publishes reports on its work on NBFI

On 9 July 2025, the Financial Stability Board (FSB) published the following reports related to its work programme to enhance resilience in non-bank financial intermediation (NBFI): Leverage in NBFI: Final report. This final report addresses financial stability risks created by NBFI leverage, focusing on risks that may arise: (i) in financial markets that are critical to the functioning of the financial system and the real economy; and (ii) thro…

Logon Opalesque Alternative Market Briefing

From Reuters: Regulators should consider limits on leverage used by non-bank financial firms such as hedge funds as well as measures to curb their size, the Financial Stability Board (FSB) said on Wednesday in a series of recommendations to make "shadow banking" safer. Non-bank fi... Article link

FSB tackles leverage in the shadow banks

Global policy group details recommendations for dealing with risks to financial stability The post FSB tackles leverage in the shadow banks appeared first on Investment Executive.