Hedge funds brace for renewed debt crisis

Hedge funds brace for renewed debt crisis

The euro zone’s debt crisis may be far from over, while Japan’s money-printing gamble to revive its economy could destabilize global markets if it doesn’t work, some hedge fund managers say.

They are taking the view that the rally in financial markets over much of the past year, fuelled by central bank money printing, could mask a failure to tackle some European countries’ and banks’ debt problems, and the sell-off of recent weeks may be the start of a longer downward move.

“(A Cyprus-style bailout) will probably happen somewhere in Europe again,” said Galia Velimukhametova, fund manager at GLG, part of hedge fund manager Man Group, at the GAIM conference in Monaco on Tuesday.

Read more

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s