Paulson: Even Odds On Euro Collapse

Jul 24 2012 | 11:43am ET

John Paulson took a misery loves company approach to his second-quarter conference call with investors, using it to cast doubt on the future of the eurozone.

The Paulson & Co. founder said that there is a 50% chance that an event leading to the breakup of the euro will occur within two years. And the collapse could come in as soon as three months, he added.

It is not the first time that Paulson has called into question the euro's future. In February, he warned that Greece could default by March—an eventuality that was avoided by European policymakers. Paulson also called the euro "structurally flawed."

The upshot, according to Paulson, is that sovereign yield spreads will likely rise.

Paulson is certainly hoping his own funds rise with them: Most are down double-digits this year after double-digit declines last year. Paulson told investors that he has reduced the net exposure of some of his funds.


In Depth

AIMA: Smaller Firms Remain the Lifeblood of the Hedge Fund Industry

Jul 26 2017 | 5:55pm ET

It is a hedge fund industry truism that the largest managers receive the most attention...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of