{"id":13877,"date":"2022-09-04T16:53:49","date_gmt":"2022-09-04T16:53:49","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/romes-financial-volatility-to-shock-the-eurozone-hedge-funds-bet-39-billion-against-italian-debt-economics-bitcoin-news\/"},"modified":"2022-09-04T16:53:49","modified_gmt":"2022-09-04T16:53:49","slug":"romes-financial-volatility-to-shock-the-eurozone-hedge-funds-bet-39-billion-against-italian-debt-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/romes-financial-volatility-to-shock-the-eurozone-hedge-funds-bet-39-billion-against-italian-debt-economics-bitcoin-news\/","title":{"rendered":"Rome\u2019s Financial Volatility to Shock the Eurozone \u2014 Hedge Funds Bet $39 Billion Against Italian Debt \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Hedge funds are betting against Rome\u2019s 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\u2019t bet this high against Rome since 2008, as Italy faces political uncertainty, an energy crisis, and an inflation rate of 8.4% in July. <\/strong><\/p>\n

Investors Expect Italian Debt Default Amid Country\u2019s Shaky Bond Market, Energy Crisis<\/h2>\n

Italy\u2019s 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<\/a> and Italian residents are being asked to turn down the heat this winter. The Italian economy has people speculating that it\u2019s only going to get worse and reports<\/a> show a massive number of investors are shorting Rome\u2019s liabilities.<\/p>\n

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<\/a> \u20ac37.20 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<\/a> high inflation rates as well, with May posting 7.3%, June recording 8.5%, and July printing 8.4%.<\/p>\n

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)<\/a> warned last month that Italy\u2019s economy would see a 5% contraction due to Europe\u2019s tensions with Russia over the Ukraine-Russia war. Italy\u2019s economic downturn is taking place amid India surpassing<\/a> the U.K. as the world\u2019s fifth largest economy.<\/p>\n

Reports<\/a> noted in July that Italy and the country\u2019s prime minister, Mario Draghi, have not done enough \u201cto kick-start growth.\u201d Despite Draghi\u2019s 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: \u201cDraghi 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.\u201d<\/p>\n

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bond market<\/a>, bond market crash<\/a>, bond scheme<\/a>, bonds<\/a>, debt default<\/a>, economics<\/a>, Economy<\/a>, Energy crisis<\/a>, Europe<\/a>, Eurozone<\/a>, Gas<\/a>, Germany<\/a>, Greece<\/a>, India<\/a>, inflation<\/a>, Italy<\/a>, market speculators<\/a>, Mediterranean coastline<\/a>, premium<\/a>, Rome<\/a>, Russia<\/a>, uk<\/a>, Ukraine-Russia war<\/a><\/div>\n<\/div>\n

What do you think about the hedge funds betting against Italy\u2019s debt? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie 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.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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