In an article in Financial News titled “A risky ride to recovery,” Sir Michael Hintze noted the impact of central bank intervention on the stability of global financial markets:
Sir Michael Hintze, chief executive and senior investment officer of hedge fund manager CQS, said central bankers believed they could maintain control, but if they lost credibility and markets lost faith in their pronouncements, “there will be significant issues”.
He said: “The problem is that if we’re all in the same trade, the exit will be incredibly crowded. The combination of a greater concentration of market participants in the same trade and a reduction in market liquidity due to regulation such as Dodd-Frank’s Volcker Rule – and you have a less stable market in the medium term.”
Read more: “A risky ride to recovery” – Financial News