Hedge funds short monoline insurers

Fears of a fresh wave of US homeowner defaults send short-selling above crisis levels

Hedge funds have begun to short the monoline insurers that cover residential loans, amid fears that banks may be forced to buy back a fresh wave of bad mortgages.

Short positions on some insurers are now above levels reached at the height of the credit crisis two years ago.

WSJ Logo
Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a BillionaireExternal link

Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a Billionaire