{
  "id": 12555694,
  "title": "Hedge funds warn BoE repo reforms could backfire",
  "url": "https://urgent.news/2026/10/07/hedge-funds-warn-boe-repo-reforms-could-backfire",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T05:12:56.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/economy-news/hedge-funds-warn-boe-repo-reforms-could-backfire-4935602"
  },
  "original_language": "en",
  "account": "A hedge fund industry group has raised concerns that proposed reforms to the short-term loan market for UK government bonds, known as repo, could backfire and reduce liquidity during market stress. The Alternative Investment Management Association (AIMA) wrote a letter to the Bank of England (BoE), warning that implementing central clearing in the market could create new vulnerabilities and expose investors to more volatility. This is a more direct warning following the AIMA's response to the BoE's initial proposals last year, which highlighted significant structural issues in the market. The global bond market selloff has highlighted soaring borrowing costs, including in Britain, where 30-year yields on government bonds have jumped to their highest since 1998. Supervisors and financial authorities are closely monitoring the growing role of hedge funds in sovereign bond markets, as the International Monetary Fund noted that hedge funds had grown their presence in the market. The BoE is conducting a consultation on proposals to make the gilt repo market more resilient, including expanding central clearing and imposing minimum haircuts on non-centrally cleared repo transactions. However, AIMA has expressed new questions about further expansion of central clearing, fearing hedge funds may rely more on shorter-term daily repo financing, potentially leaving investors more exposed to disruption in funding markets. AIMA's concerns come after the recent global selloff in bond markets. The BoE has not yet decided on which proposals to implement, with Deputy Governor Sarah Breeden warning that doing nothing is not an option, as banks could pull repo financing more aggressively in a severe market shock. The gilt repo market totals around £200 billion, of which £85 billion is held by hedge funds.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Investing.com",
        "title": "Hedge fund group warns BoE gilt repo reforms could hurt liquidity - report",
        "url": "https://urgent.news/2026/10/07/hedge-fund-group-warns-boe-gilt-repo-reforms-could-hurt-liquidity",
        "published": "2026-10-07T05:32:12.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}