Dark Capital · DC-003

The Fund Shorted The Bond. The Rating Changed The Next Day. She Used To Work For The Fund.

A credit rating agency downgraded a sovereign bond, causing immediate selling by institutional investors linked to investment mandates. In the six weeks prior, a hedge fund had strategically shorted the bond, resulting in a profit of £290 million. The lead analyst behind the downgrade had left the hedge fund only eight months earlier.

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