Jun 29, 2026 – 12.40pmThe surging numbers of retail investors in the sharemarket has heightened the risk of a much bigger economic fallout from a correction that threatens financial stability, central bankers have warned.The Bank of International Settlements – often regarded as the central bank for central banks – has also warned of the risks of highly leveraged hedge funds playing in the bond market along with debt-fuelled spending on artificial intelligence.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Retail investors risk turning market correction into recession: BIS
The Swiss bank has issued a stark warning on AI, but within the 133-page report it’s also warned of other risks including hedge funds playing in the bond market
BIS warns retail investor surge and leveraged hedge funds amplify market correction risk; AI debt-spending compounds systemic pressure. Tech leaders face tighter capital allocation, delayed M&A, and higher infrastructure financing costs in potential liquidity squeeze.











