BOE Warns Risk of ‘Further Sharp Corrections’ in Markets Is High

The Bank of England said hedge funds have faced “significant” margin calls from their prime brokers as they navigated extreme market volatility in the aftermath of US President Donald Trump’s tariff announcements and warned that the risk of “further sharp corrections” remains high.

While the central bank’s Financial Policy Committee found that so far those firms had been able to meet margin calls, it warned that the overall global risk environment has deteriorated, according to minutes from meetings it held on April 4 and April 8.

“Uncertainty has intensified,” the committee said. “The probability of adverse events, and the ...