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Political Risk Makes France a Go-To Market for Short Sellers

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Bonds Political Risk Makes France a Go-To Market for Short Sellers Political risk in France has become so elevated that its stock market has turned into the largest short in Europe and the US for some investors, according to Barclays Plc strategists. Both systematic and discretionary funds are increasingly steering clear of France’s CAC 40, with Barclays noting that the latest cut in equity exposure has been driven by trend-following funds — Commodity Trading Advisors (CTAs) — which take...

Bonds Political Risk Makes France a Go-To Market for Short Sellers Political risk in France has become so elevated that its stock market has turned into the largest short in Europe and the US for some investors, according to Barclays Plc strategists. Both systematic and discretionary funds are increasingly steering clear of France’s CAC 40, with Barclays noting that the latest cut in equity exposure has been driven by trend-following funds — Commodity Trading Advisors (CTAs) — which take long or short positions in index futures based on market signals.
France (LOCATION) Europe (LOCATION) US (LOCATION) Barclays Plc (ORG) Barclays (ORG) Commodity Trading Advisors (ORG)
Originally published by Bloomberg Markets Read original →