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Hedge funds bet big on the falling euro

Posted By admin On May 23, 2010 @ 3:43 am In Money Watch | Comments Disabled

Louise Armitstead
London Telegraph
May 23, 2010

Hedge funds that made millions from the implosion of America’s subprime market are betting on a similarly dramatic collapse of the 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.”

Full article here [1]

Hedge funds bet big on the falling euro  150410banner7 [2]

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[1] Full article here: http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7753874/Hedge-funds-bet-big-on-the-falling-euro.html

[2] Image: http://www.homegain.com/housead/homes_for_sale/index?entryid=11502

[3] Man who broke the Bank of England George Soros ‘at centre of hedge funds betting against crisis-hit euro’: http://www.prisonplanet.com/man-who-broke-the-bank-of-england-george-soros-at-centre-of-hedge-funds-betting-against-crisis-hit-euro.html

[4] The New Tax Man: Big Banks and Hedge Funds: http://www.prisonplanet.com/the-new-tax-man-big-banks-and-hedge-funds.html

[5] Hedge funds gain access to $200bn Fed aid: http://www.prisonplanet.com/hedge-funds-gain-access-to-200bn-fed-aid.html

[6] The Meltdown Of The Hedge Funds – And Its Effect On The Market – Was Foreseeable: http://www.prisonplanet.com/the-meltdown-of-the-hedge-funds-and-its-effect-on-the-market-%e2%80%93-was-foreseeable.html

[7] Greek Bailout #2 Is Dead On Arrival: A Few Good Hedge Funds May Have Called The ECB’s Bluff, And Hold The Future Of The EUR Hostage: http://www.prisonplanet.com/greek-bailout-2-is-dead-on-arrival-a-few-good-hedge-funds-may-have-called-the-ecbs-bluff-and-hold-the-future-of-the-eur-hostage.html

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