Hedge funds that viewed the safety of euro-zone sovereign debt with skepticism are starting to...

|By:, SA News Editor

Hedge funds that viewed the safety of euro-zone sovereign debt with skepticism are starting to see their bets pay off, after a welter of warnings this week about government borrowings from Dubai to Greece and the U.K. rattled markets around the world. While such bets were costly over the past year, they're now proving prescient.