- February 20, 2010
Who will end up making money off the run-up in Greek CDS? (Part 3)
A few days ago we asked the question who stands to win off the run-up in certain European sovereign CDS. In the first update, we identified the possibility that banks “are said to have been the biggest buyers of sovereign CDS during the financial crisis.”
Now more specific buy-side names are also coming to light. We remind readers that no actual positions can be confirmed at this point so these could merely be rumours or speculation but all the same we provide the list of early candidates being reported in major financial media outlets.
Reuters quotes claims by Greece’s intelligence agency, EYP, that four asset-management firms alleged to have sold Greek bonds since December include London-based hedge fund manager Brevan Howard, and U.S.-based Moore Capital, Fidelity International and Paulson & Co. ”Brevan Howard said in a letter to investors it had no short exposure to Greek debt since mid-December, and that it had no plans to short the bonds or buy CDS in the foreseeable future.”
The WSJ also put out names of companies believed or known to be shorting the Euro including BlackRock, Moore Capital and Paulson & Co.
New York Times put out a blog quoting a Reuters report indicating increasing short Greek bond positions but did not name specific firms involved.