Forget that knee-jerk reaction. According to InsiderMonkey some hedge funds are calling it quits on one of their
biggest trades of the year - shorting French government bonds. Earlier this
year many in London's hedge fund industry were lining up bets against the euro
zone's second-largest economy, reckoning the May election of President Francois
Hollande, a socialist, would accelerate the country's deteriorating economic
outlook. But the trade has not worked out as planned. France's long-term
borrowing costs fell to a record low at auction last week as investors sought
out safe havens. So some funds are now cutting their losses or changing
tactics, for instance betting against French equities instead….
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