Saturday, June 8, 2013

SHORT SELLING?

The famed hedge fund short-seller Carson Block's is betting against Standard Chartered, the UK-based, emerging market-focused bank. According to Euromoney, Mr. Block said in mid-May that “deteriorating loan quality” makes Standard Chartered a prime target for a bearish punt, expressed by shorting its five-year CDS. Read the whole story. But wait a minute: shouldn't he rather be buying five-year CDS, given his outlook?

(*) Sid Verma: "Carson Block misfires on Bearish Standard Chartered bet", Euromoney, 31 May 2013.
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