One Trader Defies ECB With Bet Rates Back at Zero Within a Year
- Options trade bets central bankers will reverse rate hikes
- Market pushes back against prospect of higher borrowing costs
Christine Lagarde, president of the European Central Bank.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
One trader is defying the European Central Bank’s tough talk on inflation by betting that interest rates will be back at zero by this time next year.
If the wager comes off, it would return €56 million ($60.2 million) at zero cost, according to details of the options-based deal provided by two London-based traders.