Wild UK market swings ‘opportunity of a lifetime’ for hedge funds

John Floyd, a currency trader for 30 years and running his own hedge fund, Floyd Capital Management said a UK government policy to bulk up on UK debt and a central bank intent on raising rates but ending up buying bonds had created a perfect storm. Floyd declined to comment on how much money he had under management.

Floyd is long the dollar and short the pound. He believes Wednesday’s BoE intervention will shake confidence in the pound and “encourage people to look for further weakness.”“Intervention in the gilt market to lower rates will make it that much more challenging to fund the external deficit and a weaker currency will be the equilibrating mechanism.”

“The problem with today’s markets is that I can’t see the conclusion of all of this but it started with Brexit - when people decided that the world getting along was a thing of the past,” said Taylor.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

U.S. stocks, commodities drop; U.S. Treasury yields surge - BNN BloombergU.S. stocks fell in a volatile session exacerbated by sharp moves in the U.K. currency and bond markets, as hawkish central banks across the globe continued to subdue sentiment.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Liz Truss tax cuts unleash $500 billion U.K. market selloffPound falls to record low amid chatter about emergency action by the Bank of England $500 B in layoffs is going to sting the Brit economy. So central bankers don't like it lol Yep, and devalued the pound as a result..
Source: nationalpost - 🏆 10. / 80 Read more »