Hedge fund managers including John Paulson are betting against bonds issued by France, Germany and the Netherlands, signaling Europe’s financial woes will worsen in the next few months, the Financial Times reported.
Paulson privately warned his investors two weeks ago that Europe’s financial crisis will probably deepen, the FT said.
Bets against those countries demonstrates a new level of bearishness because it suggests the “core” of Europe is mispriced, even though much of the region’s troubles are on the fringes in countries such as Spain and Greece, according to the newspaper.
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