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John Paulson's short of Europe just got a bit more interesting. He reportedly is short EU...

John Paulson's short of Europe just got a bit more interesting. He reportedly is short EU sovereign debt, but the FT reports it's German paper he's shorting as he believes the eurozone debt crisis will deepen enough to threaten that stolid stalwart's creditworthiness. Now that's a contrarian play worthy of the man behind The Greatest Trade Ever.
Comments (6)
  • wyostocks
    , contributor
    Comments (8226) | Send Message
     
    Not really contrarian . If there was any honest reporting on the massive debt being run up in Europe (lets not even mention America) more would be doing it and IMO the bet looks very reasonable.
    I wish I had the money to join in on the bet.
    17 Apr 2012, 03:30 PM Reply Like
  • Jake Huneycutt
    , contributor
    Comments (1360) | Send Message
     
    Shorting German debt makes much more sense than shorting the PIIGS. Given constant intervention in the Eurozone markets, shorting the PIIGS is essentially nothing more than speculation. However, German bond yields have to go up almost regardless of the solution to the crisis; and indeed, they are held artificially low right now by the Euro's structure. But that structure can only be sustained through constant bailouts by Germany.
    17 Apr 2012, 03:37 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    Its a better bet to short the strongest of the EU.....
    17 Apr 2012, 03:40 PM Reply Like
  • nolanfyfe
    , contributor
    Comments (12) | Send Message
     
    Are there any leveraged bond ETF's such as UBT (American Treasuries *2 bull) for Germany?
    17 Apr 2012, 07:09 PM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (546) | Send Message
     
    Don't know if it's shortable, but there's BUNT - 3X German Bund Futures ETN. There's also BUNL, but it's not leveraged.
    17 Apr 2012, 08:32 PM Reply Like
  • Angel Martin
    , contributor
    Comments (1311) | Send Message
     
    the guys shorting subprime who made the largest % returns shorted the "highest rated" tranches. The equivalent here is shorting german bonds.

     

    Does anyone know of a german bond etf that has options?
    17 Apr 2012, 08:44 PM Reply Like
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