BIS flags rising hedge fund leverage in sovereign debt as systemic risk

The Bank for International Settlements (BIS), a Switzerland-based central banking institution, has urged policymakers to curb hedge funds’ use of leverage in government bond markets. BIS's De Cos emphasised that controlling NBFI leverage is a key policy priority Pablo Hernández de Cos, general manager of the BIS, highlighted the combination of rising public debt and the growing role of non-bank financial institutions (NBFIs) in sovereign debt markets, especially after the global