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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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