Hedge funds are positioning for a widening gap between two key euro money-market interest rates as shrinking excess liquidity in the European banking system creates opportunities for relative-value trades, according to a report by Bloomberg.
Investors are using futures to bet that Euribor, which reflects expected short-term bank borrowing costs, will rise faster than the Euro Short-Term Rate (ESTR), the euro area’s overnight benchmark. The strategy is gaining momentum as tighter financial condit...
Continue Reading
Sign up for FREE to read the full article and access 159K+ alternative investment headlines.
Alternative Investment News