Hedge funds profit via receivers post-ECB meeting

Paola Lamedica
By Hazel Sheffield
09 Sep 2014

Hedge funds and some real money desks were seen setting up bullish positions using credit options in iTraxx indices ahead of the European Central Bank meeting on Sept. 4 and unwinding them to a profit not long afterwards, according to credit analysts.

“Investors positioned for a bullish announcement from the ECB mostly via receivers and took profit fairly soon after,” Paola Lamedica, credit sector specialist at BNP Paribas in London, told GlobalCapital. Ahead of the meeting, Lamedica noted hedge funds were buying September receivers close to at-the-money. In Crossover 200bp ...

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