HSBC, Barclays Making Markets for Thames Water Short Bets
- Short interest on some Thames bonds has surged in past week
- Traders are betting Thames Water is heading for restructuring
Short interest on some Thames Water bonds has surged.
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Credit traders at Barclays Plc and HSBC Holdings Plc are among those making a market for clients to bet against the debt of Thames Water amid an escalating crisis at the UK’s largest water utility.
Traders on the London credit desk of the two British banks started facilitating wagers against the debt, according to people familiar with the matter, who asked not to be identified because they’re not authorized to talk about the transactions. Traders at Goldman Sachs Group Inc. are providing a similar service, some of the people said.