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Alternative Investments

Why surging retail investment and hedge fund leverage threaten global financial stability and economic downturn


The surging numbers of retail investors in the sharemarket has heightened the risk of a much bigger economic fallout from a correction that threatens financial stability, central bankers have warned.

The Bank of International Settlements – often regarded as the central bank for central banks – has also warned of the risks of highly leveraged hedge funds playing in the bond market along with debt-fuelled spending on artificial intelligence.

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