Twice-Bitten Traders Take No Chances With French Election Risk
- Goldman, Deutsche Bank recommend selling French debt into vote
- Pimco says selling euro versus Swiss franc is ‘logical hedge’
French Race Tightens as Election Day Nears
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After last year’s political shocks from the U.K. and the U.S., investors are taking no chances with the risk of a French version.
As France’s most unpredictable presidential vote in a generation looms less than a week away, banks and asset managers are building defenses against a win for anti-euro candidate Marine Le Pen even as polls suggest it’s unlikely. Bracing for a political upset similar to Brexit and Donald Trump’s victory, they are positioning for potential declines in the common currency as well as France’s government bonds.