{"id":7069,"date":"2008-01-31T00:00:00","date_gmt":"2008-01-31T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"hedge-funds-buy-bank-cds-to-short-spanish-property","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/01\/2008\/hedge-funds-buy-bank-cds-to-short-spanish-property.html","title":{"rendered":"Hedge funds buy bank CDS to short Spanish property"},"content":{"rendered":"<p>Guardian Unlimited- The cost of insuring Spanish banks&#8217; debt against default has leapt by at least a third this year, as hedge funds use credit derivatives to short Spain&#8217;s fragile property market, market participants say.<\/p>\n<p>Jackie Ineke, a banking analyst at Morgan Stanley, told Reuters that hedge funds were &quot;phoning up every day&quot; asking how to short Spanish property and the only effective way to do it was by buying credit protection on Spanish banks.<\/p>\n<div>The trend began last year but appears to be broadening.<\/div>\n<div>Smaller savings banks with exposure to coastal markets such as Caja de Ahorros de Valencia, Castellon, y Alicante (Bancaja) and Caja de Ahorros del Mediterraneo (CAM) have been hit especially hard since the summer.<\/div>\n<div \/>\n<div>According to Markit data, 5-year credit default swaps on Bancaja have jumped to more than 200 basis points (bps) from a little over 150 bps at the end of 2007 and less than 20 bps last July. <\/div>\n<p><a href=\"http:\/\/news.google.com\/news\/url?sa=T&#038;ct=us\/3-0&#038;fd=R&#038;url=http:\/\/www.guardian.co.uk\/feedarticle%3Fid%3D7268343&#038;cid=1127059694&#038;ei=DXWhR_KFII7eqgP6sqzTDg\"><strong>Read Complete Article<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Guardian Unlimited- The cost of insuring Spanish banks&#8217; debt against default has leapt by at least a third this year, as hedge funds use credit derivatives to short Spain&#8217;s fragile property market, market participants say. Jackie Ineke, a banking analyst [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-7069","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/7069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=7069"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/7069\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=7069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=7069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=7069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}