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Article: Macro funds scent risk in the global economy.
- Article from:
- Sunday Business (London, England)
- Article date:
- February 10, 2007
CopyrightCOPYRIGHT 2007 Sunday Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Tom Burroughes
Feb. 10--For all the buoyant earnings reports in Europe and America in recent days, risk levels are mounting in the global economy. While this is bad news for most investors, it is just what macro hedge funds had been waiting for.
Macro hedge funds earn their living by making big leveraged bets on moves in currencies and interest rates, usually employing derivatives. They thrive on volatility and uncertainty, craving dramatic shifts in currency, interest rates and stock markets to make money.
So recent warnings by central bankers and regulators will have been music to their ears. Jean-Claude Trichet, head of the European ...