RBI warns unwinding of leveraged hedge fund positions during stress could roil bond markets
The Reserve Bank of India has issued a stark warning regarding the increasing influence of large, leveraged hedge funds in global sovereign bond markets. Their rapid exit during market turmoil could trigger significant sell-offs and widespread financial instability. This concern is amplified by rising global debt levels and increasing government borrowing needs, making markets more susceptible to investor sentiment shifts and potential rollover risks.
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