Hedge Funds Foiled By Europe’s Distorted Debt Market

(Reuters) Ultra-easy European Central Bank monetary policy is protecting the debts of some of the bloc’s weakest countries from attack by speculative hedge funds. Through a combination of low rates and bond purchases over the last four months, the ECB has pushed up the value of euro zone debt to the extent that leveraged investors now find it too expensive to borrow the bonds they need to take a ‘short’ position on a country’s debt.

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