BoE’s Cunliffe: hedge funds played key role in March ‘turmoil’

Jon Cunliffe
Jon Cunliffe
Bank of England

Seemingly prudent actions by hedge funds added to market turmoil from Covid-19, the Bank of England’s Jon Cunliffe has said.

The BoE deputy governor said this demonstrates that regulators face a challenging task in tackling non-bank risks. Risk management considerations led funds to cut leverage, but this simultaneously reduced the supply of market liquidity and increased demand for it.

In remarks on November 12, Cunliffe said a challenge for regulators is that in normal times, hedge funds add

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