Thursday, January 15, 2015

Hedge funds, Banks, Homeowners Facing Margin Calls

Hedge funds, banks, or anyone with loans denominated in Swiss francs but located outside Switzerland could be facing massive losses and margin calls tomorrow. Today's move, another step in the ongoing trend from risk-taking to risk-aversion, provide a preview of things to come when unexpected dollar strength creates margin calls for nations too important to fail. Market force will teach another generation the meaning of the old saying, "twice the pride, double the fall."

Headline: Hedge funds, speculators face big losses on Swiss franc rally

NEW YORK/LONDON (Reuters) - Currency speculators, especially large global macro hedge funds with big short positions in the Swiss franc, are staring massive losses in the face after the Swiss National Bank shocked markets on Thursday by removing a three-year-old cap on the currency.



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