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A mystery investor or hedge fund reportedly made a bet of almost $1billion at odds of 10/1 last month that the U.S. would lose its AAA credit rating.
Now questions are being asked of whether the trader had inside information before placing the $850million bet in the futures market.
...
The latest bet was made on July 21 on trades of 5,370 ten-year Treasury futures and 3,100 Treasury bond futures, reported ETF Daily News.
Now the investor’s gamble seems to have paid off after Standard and Poor’s issued a credit rating downgrade from AAA to AA+ last Friday.
Whoever it is stands to earn a 1,000 per cent return on their money, with the expectation that interest rates will be going up after the downgrade.
Not surprising – unfortunately.
Anbody that has been watching the stock, bonds and currencies on a regular basis is not really surprised by the downgrade or the markets reaction to the debt ceiling deal. The fund managers at Pimco the largest bond fund in the country has been moving out of U.S based assets since early this year. In mid-July S&P put the United States on CreditWatch and stated very clearly the conditions that needed to be met in order for the United States to maintain it's bond rating. They inlcuded deficit reduction of AT LEAST $4 TRILLION DOLLARS.
"Who Made Nearly A Billion Dollars Betting On America's Debt Downgrade?"
"In the first trading day following S&P’s announcement that the U.S. government credit rating would go from Triple-A down to AA+, U.S. stocks have sharply declined and investors are scrambling to rid themselves of risky assets. With Wall Street in disarray, one investor is smiling after having walked away from the crisis possibly 10 billion dollars richer. ETF Daily News reports that the investor bet on the downgrade, and is now heavily benefiting from it..."
"In the first trading day following S&P’s announcement that the U.S. government credit rating would go from Triple-A down to AA+, U.S. stocks have sharply declined and investors are scrambling to rid themselves of risky assets. With Wall Street in disarray, one investor is smiling after having walked away from the crisis possibly 10 billion dollars richer. ETF Daily News reports that the investor bet on the downgrade, and is now heavily benefiting from it..."
Soros has a long history of collapsing currencies. I'd think those with whom Soros is closest to in our government should have their investments inspected. No doubt Soros's timing in dumping his other investors to avoid mandatory opening of his books was a timely move.
Soros said he didn't do it and I don't know if he did or not but that's what he said... until there is more conclusive proof, I really don't know who did it and neither does your article... they are only assuming but nobody knows...
Soros said he didn't do it and I don't know if he did or not but that's what he said... until there is more conclusive proof, I really don't know who did it and neither does your article... they are only assuming but nobody knows...
Wellllll . . . you might not "know" . . .but . . . come on, now . . . in your heart . . . you do "know."
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"Who Made Nearly A Billion Dollars Betting On America's Debt Downgrade?"
