Hedge Funds Are Betting on Greek Default, Handelsblatt Reports
Some hedge funds won’t accept a plan to cut Greek debt as they are betting that the country will default, Handelsblatt reported, without saying where it got the information.
Hedge funds have bought Greek bonds as well as bad-debt insurance in the form of credit default swaps and therefore have no interest in the country’s rescue, the German newspaper said.
Should more than 50 percent of creditors take part in the debt reduction agreement, it would be pleasing, an unidentified banker familiar with negotiations said, according to Handelsblatt. In contrast, European Union officials expect a participation rate of not much lower than 100 percent, the newspaper said.
To contact the reporter on this story: Sheenagh Matthews in Frankfurt at smatthews6@bloomberg.net
To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net
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