Britain’s bond market is undergoing a shift, and the risks could reach far beyond the City of London. Traditional long-term investors are stepping back while hedge funds and other price-sensitive buyers play a growing role in gilt trading. Many use leverage, increasing the danger that falling bond prices could trigger margin calls, forced selling and a self-reinforcing market panic. In this video, we explain what the Bank of England has revealed, why government borrowing remains so high, and how a gilt sell-off could affect mortgages, business loans, taxes and public services. Is Britain moving closer to a bond market meltdown?
Credit to : EUREKA UK
Please support our Sponsors below --