S&P lowered US from stable to negative in April 2011.
8/8/11, "Who 'made $10bn on 10/1 bet that U.S. credit rating would be downgraded'?" UK Daily Mail, M. Duell,
- "Unknown investor or hedge fund 'made $850 million bet'"
Now questions are being asked of whether the trader had inside information before placing the
- $850million bet in the futures market.
There were mounting rumours that investor George Soros, 80, famously known as ‘the man who broke the Bank of England’, could be involved.
He made more than $1billion on currency speculation when the British pound left the Exchange Rate Mechanism on Black Wednesday in 1992.
But a source with knowledge of the firm said Soros was not involved in the rumoured trade and questioned whether in fact there had been such a trade at all.
The latest bet was made on July 21 on trades of 5,370 ten-year Treasury futures and 3,100 Treasury bond futures,
- reported ETF Daily News.
Now the investor's gamble seems to have paid off after Standard and Poor’s issued a credit rating downgrade from AAA to AA+ last Friday.
Whoever it is stands to earn a 1,000 per cent return on their money, with the expectation that interest rates will be going up after the downgrade."...
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7/27/11, "Will U.S. Default? $4.8 Billion Investment Says Yes," ABC News. Alan Farnham
"Investors are spending $4.8 billion to hedge against the possibility that credit rating agencies will downgrade U.S. debt--or worse, that the U.S. actually will default. Doomsayers predict these and other dire consequences if Congress fails to act by August 2 to raise the nation's debt ceiling.
Rating agency Standard & Poor's earlier in July warned the U.S. that it risks a downgrade of its top AAA rating to AA status, unless Congress lifts the $14.3 trillion ceiling and reduces total debt by $4 trillion over 10 years. The agency
- in April lowered its rating outlook for the U.S. from stable to negative."...
via WZ
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