Tuesday, 26 July 2016
Last updated 5 hours ago
Nov 17 2006 | 1:03pm ET
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.”
The unknown hedge fund is apparently bailing out of its currency carry trades to cover losses in energy trades gone wrong.
Bond market analyst Beth Malloy told the news agency that word of the impending collapse is spreading, “but nobody can confirm anything.”
Not everyone is buying the news. “You have to take it with a grain of salt,” Forex.com’s Brian Dolan told MarketWatch. “It smells a bit fishy to me.”