14-05-2025
BOE Is Looking for Ways to Tame Risks From Leveraged Gilt Trades
The Bank of England will consult investors on how to improve UK bond market resilience in order to avoid a repeat of the 2022 gilt crisis.
Deputy Governor Sarah Breeden said policymakers aim to reduce the risk of another rapid unwinding of leveraged gilt trades, which threatens financial stability. The central bank will issue a discussion paper later this year on possible reforms, including greater central clearing of gilt repurchase agreements, or repos, as well as minimum haircuts on non-cleared repos.
