Business · Markets · 1 day ago

Iran war has not halted flights as hedge funds grow in bond markets

Iran war has not halted flights as hedge funds grow in bond markets

Fears in the spring that the war in Iran would cause major jet fuel shortages and cancelled flights have not come true.

Fuel supplies have stayed available despite a blockade and much higher prices.

The discussion asks who will ultimately bear the cost of more expensive fuel: airlines or passengers.

It also examines hedge funds, which have become larger players in government bond markets, especially in the United States.

They can borrow money to take large positions and profit from very small price changes.

The IMF warns that their growing influence could threaten financial stability if interest rates rise suddenly and funds all need to sell at once.

Rising government borrowing costs and concerns about French and US debt are also part of the discussion.

It considers whether hedge funds or government borrowing and spending are the bigger problem, and whether markets can keep relying on central banks to intervene in a crisis.

Sources

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