The big financial risk regulators are talking about could cause 'complete market disfunction'

If a sell-off in the bond markets leads to investors pulling their money from loss-making funds investing in bonds, the sell-off will intensify further and the panic among investors will worsen too.

Barclays put out a research paper last week that said that since 2008, hedge funds have been shortening the amount of time it takes for their investors to redeem their money.

But, as BI's Matt Turner noted, hedge funds are increasingly in a position where they can't sell assets quickly to get that money to return to their investors.

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