Investors and hedge funds seem to be downplaying the fact that moody is doing some serious review on the ratings of a ton of European and American banks including BofA, Morgan Stanley, Goldman, JP Morgan, Barclays, ect.
Make no mistake about it, hedge funds maybe be downplaying this in the public eye with statements like "the public has already priced in such downgrades" and "ratings downgrades on banks don't hold the same significance they once did", but behind closed doors they are laying down the hammer knowing full well that many of the banks under review will be downgraded and it will move the sector down as much as 5%.
I'd like to take this opportunity to be the hawk as opposed to the sheep, and make some puts on the most likely candidate for downgrades in my eyes: MS.
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