HALISTER1: BlueBay May Close Short-Pound Position on Odds of Soft Brexit

BlueBay May Close Short-Pound Position on Odds of Soft Brexit

(Bloomberg) -- BlueBay Asset Management may look to close its short position on sterling, “if it looks like a soft Brexit is more likely” following the U.K. election, fund manager Mark Dowding said in emailed comments. 
  • Still, a totally chaotic Brexit is a real possibility at this stage
  • “Euro-zone policy makers will be struggling to contain their laughter this morning. Strong and stable euro zone versus weak and wobbly U.K.”
  • Dowding expects May to offer resignation as her position “untenable”
  • BlueBay turned short pound before the election and added to short positions in gilts vs bunds ahead of ECB meeting 
    • Said being short gilts is probably an easier trade
  • NOTE: U.K. PM May Likely to Resign, Risking Brexit Talk Delays: Citi
To contact the reporter on this story: Stefania Spezzati in London at sspezzati@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Anil Varma

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2539Z GR (European Central Bank)

People
Mark Dowding (BlueBay Asset Management LLP)

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