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Bailey says it appears there is more concentrated hedge fund positioning

BOE
  • Q: Governor asked about the risks of UK retail investors involved in US markets.
  • A: Points out that these are high risk. Notes that retail brokerages need to stress test the margin call process. As has been well documented, retail brokerages have had to raise money themselves at short-notice. This has risks. Also points to more concentrated hedge fund positioning. Says its interesting that this has come with both a change in people's living conditions but also more concentrated hedge fund positioning.

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