Times Online- Hedge Funds are beginning to bet that shares in Britain’s biggest banks have hit rock bottom, in spite of mounting speculation about further multi-billion-pound rights issues and fresh concerns about the mortgage market.
Traders have begun to scale back their “short” positions on shares in Britain’s biggest banks, according to research conducted by a large investment bank. A short position is a bet that the share price will fall.
Only 5.4% of Barclays’ shares are now held by short-sellers, compared with 10.5% a month ago. The size of the short position on Royal Bank of Scotland, which announced a £12 billion rights issue two weeks ago, has dropped from 6.1% to less than 4% over the same period.
