Muddy Waters’ Block shorts StanChart debt
Carson Block, founder of research firm Muddy Waters, is shorting Standard Chartered’s debt due to its exposure to loans linked to China and Indonesia, he told the audience at the SkyBridge Alternatives Conference in Las Vegas on May 10. But while analysts conceded that Standard Chartered’s strong presence in these geographies did expose the bank to higher-risk clients, they have played down Block’s comments.
Block reportedly said he would short the banks five year credit default swaps (CDS) based on his views that its $1bn loan to Bumi chairman Samin Tan and loans to Far East Energy have raised "red flags" on the quality of its lending.
"The issue that Muddy Waters has
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