Now that's how you trade bonds
The infamous short seller, turned macro hedgie, Dan Loeb has made somewhat of a killing in Greek bonds.
This summer, when everybody was touting how terrible Greece is, when the media was reporting on the latest incremental development in the Euro Zone, Loeb went long Greek bonds at about 17 cents on the euro, Financial Times is reporting:
And Leob's fund, Third Point, has racked up returns of over 20 percent this year, compared to an industry average of 4.9 percent.
It is unclear if the fund has liquidated its position, but if they haven't, they are the biggest holder of Greek bonds.
The moral of the story is; the yield is there, if you are smart enough.
This summer, when everybody was touting how terrible Greece is, when the media was reporting on the latest incremental development in the Euro Zone, Loeb went long Greek bonds at about 17 cents on the euro, Financial Times is reporting:
One of the world’s most prominent hedge funds is sitting on a $500m profit after making a bet that Greece would not be forced to leave the eurozone, bucking the trend in a difficult year for the industry.Right now the same bonds are trading at 34 cents on the euro, netting Loeb's hedge fund a nice 500 million dollar profit.
And Leob's fund, Third Point, has racked up returns of over 20 percent this year, compared to an industry average of 4.9 percent.
It is unclear if the fund has liquidated its position, but if they haven't, they are the biggest holder of Greek bonds.
The moral of the story is; the yield is there, if you are smart enough.
Source:
finansakrobat
http://finansakrobat.com/#navGhost
