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Global regulators target hedge fund leverage in sovereign bond markets
The Financial Stability Board (FSB) is preparing to launch a public consultation on improving transparency around leveraged hedge fund positions in sovereign bond markets, as regulators seek to address data gaps that could obscure systemic financial risks, according to a report by Bloomberg. The initiative, led by Bank of England governor Andrew Bailey through the FSB's Non-Bank Data Task Force, will focus on developing consistent measures of hedge fund leverage, particularly in the basis trade. The strategy typically involves exploiting price differences between government bonds and related f