Money drain: Fears are rising that the global financial system will seize up
Money drain: Fears are rising that the global financial system will seize up
When the Bank of England was forced to intervene in the UK bond market last month to avert a foreign exchange and bond market crisis it could have been seen as an event unique to the UK. Could it have been, however, a symptom of a wider problem and a foretaste of future crises to come?
The sea change in bond market conditions this year could, as we saw in the UK, force institutions to dump high-quality collateral (like Treasury securities) to meet margin calls in other markets that are equally, if not even more…
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