EU ban on naked CDS short worries Asian investors
Christopher Langner, Christopher Whittall, IFR, 23 October 2012
Some Asian fixed-income investors are grappling with how to hedge high-beta portfolios on the eve of the implementation of a ban on naked shorting of European sovereign CDS.
Until March this year, using European CDS bets to offset potential losses from a drop in prices of Asian high-yield bonds had become a fairly popular strategy. However, since regulators in Europe said they were banning the practice from November 1, many of those bets were unwound. Continue reading “Article: EU ban on naked CDS short worries Asian investors”
