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The debt-fuelled bet on US Treasuries that’s scaring regulators

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The Financial Times

8 min read
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Policymakers are concerned about the huge leverage that hedge funds are employing as part of the so-called basis trade.

19 September, 2023 by Kate Duguid, Costas Mourselas and Ortenca Aliaj

One year ago, a pocket of borrowed money on the edge of UK bond markets imploded with enough force to topple a prime minister and draw the Bank of England into an emergency rescue.

Now the world’s most influential regulators are

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