Hedge funds bridging the bond-buying liquidity gap in Europe

<img width="250" height="171" src="https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-iStock-536278573-250×171.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-iStock-536278573-250×171.jpg 250w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-iStock-536278573-700×478.jpg 700w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-iStock-536278573-768×524.jpg 768w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-iStock-536278573-120×82.jpg 120w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-iStock-536278573-245×167.jpg 245w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-iStock-536278573-500×341.jpg 500w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-iStock-536278573.jpg 1239w" sizes="(max-width: 250px) 100vw, 250px" /><p>Recently, fixed-income markets focused on who will buy government bonds as the supply increased to address debts that piled up during the pandemic and the energy dilemma following the Ukraine war. Globally, central banks have been increasing interest rates to tackle inflation.</p>
<p>At the same time, these leading financial institutions withdrew from bond-buying programmes, directly impacting economic growth. At the Association for Financial Markets in Europe (AFME) conference in Brussels, Thomas Weinberg, head of trading and issuance at a German debt management agency, commented:</p>
<blockquote><p>We have seen a rise of hedge fund activity, which may have replaced or surpassed ECB buying for whatever reason to go into the fixed income market.</p></blockquote>
<p>______________________________________________________________________</p>
<p><a href="https://finaffiliates.us20.list-manage.com/subscribe/post?u=e0dd4d77c259eb270712a4eeb&amp;id=fd200b8f75&amp;v_id=4291&amp;f_id=00946ce6f0" target="_blank" rel="noopener noreferrer"><em>Don’t miss out the latest news, subscribe to LeapRate’s newsletter</em></a></p>
<p>_______________________________________________________________________</p>
<p>He further added that hedge funds make up an estimated 40% of turnover in German securities. Other debt agency officials at this conference said banks are more careful about bond investments in light of the ongoing financial crisis.</p>
<div><img aria-describedby="caption-attachment-451137" decoding="async" class="wp-image-451137" src="https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-700×700.jpg" alt="" width="98" height="98" srcset="https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-700×700.jpg 700w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-250×250.jpg 250w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-150×150.jpg 150w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-768×768.jpg 768w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-120×120.jpg 120w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-245×245.jpg 245w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456-500×500.jpg 500w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Hedge-funds-bridging-the-bond-5521866456.jpg 800w" sizes="(max-width: 98px) 100vw, 98px" /><p>Mercedes Abascal Rojo Source: LinkedIn</p></div>
<p>According to Reuters, the UK debt management office head, Robert Stheeman, feels hedge funds filled this gap and ensure the liquid flow of buying and selling assets. However, Mercedes Abascal Rojo, the Spanish Treasury head of funding and debt management, cautioned:</p>
<blockquote><p>Higher participation can be healthy and excessive participation can be problematic and we have to be aware of that.</p></blockquote>
<p>The post <a rel="nofollow" href="https://www.leaprate.com/news/hedge-funds-bridging-the-bond-buying-liquidity-gap-in-europe/">Hedge funds bridging the bond-buying liquidity gap in Europe</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>