This Hedge Fund Trade Is Stirring Fresh Controversy in the CDS MarketBy
McClatchy’s loan deal with hedge fund roils CDS market
Publisher’s deal comes as regulators step up scrutiny of CDS
It seemed like a sure-fire bet: short the debt of a highly leveraged newspaper company that’s losing money. And for a while, it worked as investors piled up almost $500 million of wagers by buying credit-default swaps on the publisher, McClatchy Co.
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