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Six Times Richer Are the Speculators Who Betted That Greece Will Go in Bankruptcy

25 June 2010 / 16:06:44  GRReporter
2316 reads

Six times richer are the speculators who aimed at Greece after the value of Greek CDS securities was $ 125,000 in October 2009 and reached almost $ 900 000 (gain 573%) eight months later!  

Bets that Greece will go in bankruptcy made speculators wealthy while investors who remained traditionalists betting on bonds and shares, accounted losses in the first six months of the year. The data is derived from an analysis of the Economist magazine, which refers to the winners and losers for the first six months of 2010.

Whole bags of money earned those who bet on hedge funds and who did not even know the location of Greece until recently. All who have bought cheap and sold expensive the expectations for bankruptcy of Greece hit the bull’s eye, as this is the only profitable investment so far. Less money earned the speculators who "played" with the possibility of bankruptcies of other European countries. Percentage earnings reached 65% based on CDSs, Eur (iTraxx) index.

On the other hand, all investors who escaped the CDS securities and preferred the shares on Wall Street or on European stock exchanges recorded losses amounting to 27%. Аll investors who avoided USA and Europe and sought their luck on other markets around the world registered losses too. The Economist says that losses of 10% were accounted globally based on the World all (MSCI) index.

Investments in bonds registered the lowest losses - 3.3%.

Tags: NewsCDS SecuritiesSpeculators
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