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Why the UK bond crisis could be just the start

The IMF is warning about potential liquidity risks in the world’s $64 trillion of managed funds. Like James Bond’s vodka martini, we have been shaken, we should be stirred.

London | A week after Britain narrowly escaped a meltdown in its gilt market, the question is whether bonds, and global financial markets more generally, were not just shaken but also stirred.

Was this just a weird niche problem in the hedging strategies of defined-benefit pension schemes? Or is there something deeper, something structural, we should be really worried about?

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Hans van Leeuwen is The Australian Financial Review’s former Europe correspondent. He is now International Economy editor for The Telegraph UK.

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    Original URL: https://www.afr.com/markets/debt-markets/why-the-uk-bond-crisis-could-be-just-the-start-20221009-p5boat