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The Bank of England said hedge funds had been able to cope with sharp falls in financial markets after many of them de-risked their investment portfolios ahead of Donald Trump’s announcement of sweeping tariffs last week.
Officials at the central bank said “the probability of adverse events” had risen and the UK’s open economy was particularly exposed to the financial market turmoil stemming from the trade war unleashed by the US president imposing tariffs on many of its trading partners.
But the BoE’s Financial Policy Committee said on Wednesday after its quarterly meeting: “While the margin calls faced by funds following April 2 had been significant, they had so far been able to meet them without taking actions which would further amplify the market liquidity.”
This is a developing story
https://www.ft.com/content/cc60e397-5646-4516-94eb-7bf0ab72c50d
