Bund Options Bet Eyes $100 Million Payout on Euro-Area Cataclysm
- Trade undertaken on futures predicated on huge haven inflows
- Motive for trade may be to hedge European political risk
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The prospect of a full-blown collapse of the euro area may be minuscule, but one unnamed bond investor isn’t taking any chances.
The trader has staked almost 300,000 euros ($350,000) on a bet that will pay out at least 100 million euros if 10-year bund yields slide to minus 2.30 percent in two months.