Fun

Rome’s Financial Volatility to Shock the Eurozone — Hedge Funds Bet $39 Billion Against Italian Debt

News Feed - 2022-09-05 01:09:23

Rome’s Financial Volatility to Shock the Eurozone — Hedge Funds Bet $39 Billion Against Italian Debt


Hedge funds are betting against Rome’s liabilities as S&P Market Intelligence data indicates investors have amassed a $37 billion short bet against Italian debt. The hedge funds are betting large against Italian bonds and investors haven’t bet this high against Rome since 2008, as Italy faces political uncertainty, an energy crisis, and an inflation rate of 8.4% in July. Investors Expect Italian Debt Default Amid Country’s Shaky Bond Market, Energy Crisis


Italy’s economy has been volatile in recent times as the Ukraine-Russia war has wreaked havoc on the European country adjacent to the Mediterranean coastline. The country is dealing with a significant energy crisis and Italian residents are being asked to turn down the heat this winter. The Italian economy has people speculating that it’s only going to get worse and reports show a massive number of investors are shorting Rome’s liabilities.


Bond borrowing schemes highlight how investors borrow the Italian liabilities in order to bet that values will decline before the debt buyback is due. S&P Market Intelligence data shows €37.20 billion of Italian bonds were borrowed by August 23. The sum of bonds borrowed is the highest since January 2008 during the Great Recession. Italy has continued to print high inflation rates as well, with May posting 7.3%, June recording 8.5%, and July printing 8.4%.


The $37 billion in shorts suggests market speculators believe Rome will default and the financial shock will spread like a contagion across Europe. Italy is traditionally known for having a strong economy but the country has a dependence on Russian gas. The International Monetary Fund (IMF) warned last month that Italy’s economy would see a 5% contraction due to Europe’s tensions with Russia over the Ukraine-Russia war. Italy’s economic downturn is taking place amid India surpassing the U.K. as the world’s fifth largest economy.


Reports noted in July that Italy and the country’s prime minister, Mario Draghi, have not done enough “to kick-start growth.” Despite Draghi’s pledge to save the euro in July 2012, Italy is struggling and the country pays the highest premium to borrow bonds after Greece. Holger Schmieding, an economist at Berenberg, said: “Draghi is trying, has done a little bit here and there but neither I nor the market are yet convinced that trend growth in Italy is strong enough.” Tags in this story bond market, bond market crash, bond scheme, bonds, debt default, economics, Economy, Energy crisis, Europe, Eurozone, Gas, Germany, Greece, India, inflation, Italy, market speculators, Mediterranean coastline, premium, Rome, Russia, uk, Ukraine-Russia war


What do you think about the hedge funds betting against Italy’s debt? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today. India Surpasses UK as World"s 5th Largest Economy Based on IMF Data ECONOMICS | 18 hours ago Deloitte: Nearly 50% of CFOs Surveyed Expect Recession to Hit US Economy This Year ECONOMICS | 22 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleArgentinian Tax Authority Wins Landmark Case to Confiscate Funds From a Digital Account Next articleEthereum Co-Founder Vitalik Buterin Discusses Bitcoin’s Long-Term Security Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItDraft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament


A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing

News Feed

Tom Mitchelhill4 hours agoNo, ARK 21 Shares spot Bitcoin ETF is not listed on DTCC websiteUnfortunately for those watching the DTCC site closely for new spot Bitcoin ETF filings, ARK Invest and 21 Shares’ joint spot Bi
Synthetix to add Chainlink when v3 exchange launches on Arbitrum
Alex O’Donnell4 hours agoSynthetix to add Chainlink when v3 exchange launches on ArbitrumIt could be followed with deployments on Optimism and Base.511 Total views21 Total sharesListen to article 0:00NewsOwn this piece
Judge approves delaying forfeiture of donations from FTX-funded PACs
Turner Wright5 hours agoJudge approves delaying forfeiture of donations from FTX-funded PACsFormer FTX CEO Sam Bankman-Fried reportedly donated roughly $40 million directly to political candidates and PACs in 2022 before
Mt. Gox still has 90,000 Bitcoin, valued at roughly $6 billion
Vince Quill9 hours agoMt. Gox still has 90,000 Bitcoin, valued at roughly $6 billionThe infamous collapse of the Mt. Gox exchange occurred in 2014, and creditors have been waiting for reimbursement for over a decade.4310
Hashrate Follows Price: Bitcoin Hashrate Jumps 92% in 2 Months, Difficulty Expected to Increase in 4 Days
Hashrate Follows Price: Bitcoin Hashrate Jumps 92% in 2 Months, Difficulty Expected to Increase in 4 Days Bitcoin prices have improved a great deal in recent times and the network&
Ukraine, Russia, South Africa, Nigeria Among Top Countries by Cryptocurrency Adoption
Ukraine, Russia, South Africa, Nigeria Among Top Countries by Cryptocurrency AdoptionUkraine, Russia, China, South Africa, Nigeria, Kenya, and the U.S. are among the top-ranking cou
Dogecoin To $2 Could Be Next If DOGE Holds This Level: Analyst
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Cryptowisser : Cryptocurrency Likely to Be More Environmentally Friendly Than Traditional Banks
Cryptowisser : Cryptocurrency Likely to Be More Environmentally Friendly Than Traditional Banks press release PRESS RELEASE. Leading Crypto service comparison site – Cryptowi
Kraken considers dropping USDT in Europe ahead of new regulations
Ana Paula Pereira6 hours agoKraken considers dropping USDT in Europe ahead of new regulationsWith new regulations in Europe set to enforce strict limits on transactions and reserve requirements, Kraken is assessing its s
China, Hong Kong, Thailand, and UAE Trial Cross-Border Transactions With Digital Currencies
China, Hong Kong, Thailand, and UAE Trial Cross-Border Transactions With Digital Currencies The monetary authorities of four jurisdictions in Asia have carried out tests with inter
Dogecoin Road To ATHs: Why $0.28 Is The Next Major Milestone For A Breakout
Este artículo también está disponible en español. Crypto analyst Dima Potts has provided insights into the current Dogecoin price action. In his analysis, Potts highlight
81 Countries Are Now Exploring Central Bank Digital Currencies — 5 CBDCs Fully Launched
81 Countries Are Now Exploring Central Bank Digital Currencies — 5 CBDCs Fully Launched Eighty-one countries are now exploring central bank digital currencies