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In late July, a mystery investor or hedge fund made a nearly $1 Billion bet that the US would lose their AAA+ credit rating, and on August 5th when S&P issued its downrade to AA+, that investor now stands to make a return of 1000%, and leads to serious questions of who the mystery trader is, and did they have insider information well before hand.
In 1992, George Soros nearly destroyed the British Pound, and made a profit of $1 Billion by betting agains the currency...
with a single push of a button someone was willing to commit more than $1 billion of real capital to this trade with expectations of a 10-to-1 return ratio. – etfdailynews.com...
This had the hallmarks of one of the largest bond shops in the world knowing something the rest of the market didn’t.
The number of shops or even central banks that can take on this level of market risk is extremely small. Some that come to mind are hedge fund manager John Paulson, Bill Gross’s PIMCO, and the U.S. and Chinese central banks.
Originally posted by Wrabbit2000
First, I'll take George Soros for 20. He has a solid track record of short selling national currencies and building fortunes from the crash of national banks.
Originally posted by misfitofscience
Someone close to Soros, the bush family, or someone close to someone at S&P.
Originally posted by jam321
US should have placed a bet itself and used the money to pay on the debt.
I don't think we will find out who placed the bet.
Originally posted by proximo
All this person was really betting on was whether or not S&P would have the guts to follow through on the downgrade. Since they had publicly stated they would it would make the company look pretty bad to back down, but if there was ever a time they might this was it.
The trade was for block trades of 5,370 10-year Treasury futures executed at 124-03 and 3,100 Treasury bond futures executed at 125-01.