Reuters – Hedge funds have increased their bets this month on Greece’s economic woes by shorting its bonds or buying default protection, although anecdotal evidence suggests some have cashed in after recent gains.
Even hedge funds without direct exposure to Greece have been insulating their portfolios against collateral damage in the currency or credit markets, as concerns over Greece’s ability to service its heavy debt have grown.
“There’s been a lot of interest in sovereign risk, we’ve just had a client call now,” said one prime brokerage executive who declined to be named.
