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Hedge funds rely on Wall Street for a range of services from the humdrum, like holding their securities, to the critical, like providing loans they use to increase their bets.
"Gamblers have to increase their bets to get the same level of excitement, just like someone addicted to drugs who has to keep using more to get an effect.
As hedge funds and other major investors increase their bets against the pound, bond investors will have more incentive to sell their holdings, especially if more downgrades are in the offing.
That impressive growth figure is likely to be revised downward as more complete figures on inventory levels are taken account of.All this has been bad news for bears, especially those, such as hedge funds, that use leverage to increase their bets.
With interest rates so low, they can borrow money at low rates and increase their bets by up to four times the amount of cash they have.
Although depressed subjects were as likely as the controls to choose the winning boxes, they took longer to decide on a winning box, and won less money due to a tendency to increase their bets at a lower rate, compared to controls.
Similar(54)
She said she had not been aware that the traders were increasing their bets.
Experts said this suggested short sellers had earlier this week been reducing, not increasing, their bets on the bank's shares falling.
In the past week or so, hedge funds and options traders have dramatically increased their bets against developing countries, says an industry consultant.
Hedge funds have increased their bets this month on Greece's economic woes by shorting its bonds or buying default protection, although anecdotal evidence suggests some have cashed in after recent gains.
WALL STREET JOURNAL Hedge Funds Pile Into Bets Against Euro | As the euro fell to a 10-year low against the yen by the end of 2011, hedge funds increased their bets against the currency to a record level, according to the Commodity Futures Trading Commission, The Financial Times reports.
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