Hedge funds, real money trade steepeners on Banco Espirito Santo

By Hazel Sheffield
29 May 2014

Hedge funds and active real money accounts are trading credit steepeners on Banco Espirito Santo after an audit found alleged irregularities surrounding debt owned by Espirito Santo International, causing a spike in volatility on the name.

According to Pierre-Yves Bretonnière, senior credit strategist at BNP Paribas in London, funds are trading the steepeners in anticipation of a normalisation of volatility given the positive fundamental backdrop around the bank and credit markets more generally.

“We believe that the fundamental backdrop remains positive for BESPL thanks ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial