AI Summary

Bank of England deputy governor for financial stability Sarah Breeden told CNBC that hedge funds’ growing footprint in global bond markets has raised the chance of a wider market shock. She said the shift in the investor mix and the funds’ heightened use of leverage increase the risk that localized turbulence could spread into broader financial stress. Breeden, who also sits on the Monetary Policy Committee, emphasized that the likelihood of such a shock is now “greater than what it was.”

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