Reuters – London-based hedge fund firm Cube Capital has sold positions in bank debt and stocks during the market rally of recent weeks, betting that prices will fall back again as the euro zone’s ongoing debt crisis continues to drive big swings in markets.
However, senior portfolio manager Nick Linnane said the growing scandal over the rigging of the Libor interest rate – which on Tuesday saw Barclays CEO Bob Diamond quit and which has seen investigations into more than a dozen banks – looks unlikely to affect the price of bank subordinated debt.
