BIS paper’s guide to monitoring ‘highly leveraged’ non-banks
The experience of the Hong Kong Monetary Authority could help guide other supervisors in dealing with “highly leveraged” non-banks, a paper published by the Bank for International Settlements says.
Authors Kevin Cheng, Zijun Liu, Silvia Pezzini and Liang Yu note hedge funds and family offices often use a lot of leverage and may not be subject to prudential or disclosure rules. “They are diverse in nature, engaging in complex or opaque derivatives transactions, and their trading strategies can
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