Hedge funds upset if naked-CD

Hedge funds upset about naked CDs by Sean Sprackling Wed 09 Mar 2010 16: 08 GMT |  Permanent link |  Cosmos does not come as a surprise, the reaction to ban naked CDs, have been uniformly negative. On Monday voted Economc and Monetary Affairs (see PR here) prohibiting the use of CDs of sovereign debt is detected.

To be fair to the Hedgies-they have a point. By FT in the latest debt crisis in Greece were buyers of Greek debt, not CD-Rs, and the increase in spreads, seemed to have come from the banks ' overexposed instead of hedge funds. In the same way, says a report (unpublished) of the EU on sovereign CDs (as you can see here) the fact that "...The empirical study has been conducted ... gives no conclusive evidence that developments in the CDs market causes higher financing costs ... "

TrackBack URL:
http://derivatives.blogware.com/blog/_trackback/4767678

No blog links found.

View the original article here