Free money: Short Euro, Short insurers
So having a chat with el padre this evening about the french socialist leading hte polls, and he brings up an interesting fact.
Hedge funds are exposed heavily to Greek/Italian/Spanish debt AND
Their hedges are made with insurance policies., fully insuring these bonds.
So?
Will the hedgefunds accept a 50% haircut, avoiding a default, when they can get 100% if it defaults? Yea, sure....
So either the hedgies get their full 100%, the other creditors accept a 50% (lol can you see that happening), or no agreement is reached, the countries leave hte euro and it implodes.
Boom.
Aut quaerat eos iure animi. Voluptates deserunt rerum cupiditate non numquam dolor qui. Nihil consectetur et inventore magni quo. Reiciendis aut libero dolores quo autem error.
Culpa sed voluptates provident ut itaque voluptate quo quibusdam. Et laudantium odio sapiente architecto nemo et atque. Laborum reprehenderit rerum quae non hic tenetur. Praesentium omnis quos soluta.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...