Hedge funds bet big on the falling euro

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HairyArsedBloke replied

23 May 2010, 15:38
I had a bet with myself that you would not resist being able to post that.

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The CoT data on Friday showed that the Euro FX shorts had abated a little. However, GBP shorts had grown to record levels, but a long way behind the continuing shorting of the euro.
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Disclaimer: This is not financial advice, etc.
I have to say that, sorry.

Last edited by HairyArsedBloke; 23 May 2010, 15:42. Reason: Added disclaimer bollocks
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AtW started a topic Hedge funds bet big on the falling euro

23 May 2010, 15:24
Hedge funds bet big on the falling euro

Hedge funds, including Hayman Advisers and Matrix Group, have told investors that they expect the sovereign debt crisis to worsen despite the €110bn (£79bn) bail-out by the International Monetary Fund, the European Union and the European Central Bank.

Anxiety about the financial health of Europe increased yesterday after Spain’s national bank was forced to take control of CajaSur, a savings bank ridden with distressed property debt, after a rescue merger with a rival collapsed.

Traders and brokers told The Sunday Telegraph that hedge funds are using a range of financial instruments to bet that the value of the euro will fall. One trader said: “Shorting the euro is the biggest bet in town.

“We’re seeing big volumes in credit default swaps and short selling in equities that are exposed to the euro.”

Gennaro Pucci, manager at Matrix, which manages £3bn, generated 19pc returns last month in its €110m Global Credit Fund on bearish euro bets. Mr Pucci told Bloomberg: “The ECB is buying debt at artificial levels, but that won’t solve structural problems.”

More: Hedge funds bet big on the falling euro - Telegraph
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