Rumors Point To Another Amaranth-Like Collapse

Is another hedge fund about to bite the bullet?

Word swirling on Wall Street that a large U.S. hedge fund is in trouble has prompted a sharp decline in the dollar and a jump in bond prices.

“There’s rumors of a hedge fund in trouble,” a London currency trader told Reuters. “Someone is selling dollar-yen. A few traders would not be enough to cause this move.”