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Bank of England deputy governor Dave Ramsden stated that the UK must address the significant leverage accumulated by hedge funds in the gilt market. He emphasized that this accumulation poses systemic risks and warrants immediate attention. As a result, officials are signaling a clear intent to implement greater oversight and regulatory measures to ensure market stability and mitigate potential vulnerabilities associated with high leverage in this critical financial sector.Dave Ramsden, the Bank of England deputy governor, has called for urgent action to regulate the high levels of leverage used by hedge funds in the UK government bond (gilt) market. Warning that this activity poses systemic risks to financial stability, Ramsden signaled that officials are preparing to enforce stricter oversight and regulatory measures on this critical sector to mitigate potential vulnerabilities.
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