A star investor of ‘The Big Short’ is shorting U.K. stocks with bets on a no-deal Brexit
From Business Insider:
The hedge-fund manager famous for betting against the U.S. housing market ahead of the 2008 crash is shorting two British bank stocks in anticipation that the U.K. falls out of the European Union without securing an exit deal.
“I’m shorting two stocks in the U.K.,” he told a conference in Dubai, United Arab Emirates, over the weekend, as reported by Bloomberg. He wouldn’t name the companies.
He reportedly told the conference that he expected the U.K. to secure a deal with Brussels that the U.K. Parliament would reject, ultimately forcing Britain out of the bloc without agreed-upon terms.
Bloomberg noted that Metro Bank and CYBG, the parent company of Clydesdale Bank and Yorkshire Bank, were the two most shorted U.K. financial stocks.
Some 6.6% of Metro Bank’s stock is being shorted, data from Castellain Capital’s Short Interest Tracker showed on Monday morning.
Eisman said that while he was shorting just two U.K. stocks, that number could rise as high as 50 if the Labour Party leader Jeremy Corbyn were to become prime minister…