Deutsche Bank, Deutsche Bank, BNP Paribas: Short positions increased sharply

Deutsche Bank in Frankfurt, BNP Paribas in Paris, Nordea Bank in Helsinki

Speculations on falling prices are increasing throughout the European banking industry.

Dusseldorf The risk of a global banking crisis has alarmed hedge funds: the unregulated investment funds have prepared extensively for falling bank share prices. This emerges from an analysis by the financial data provider S3 Partners, which is available to the Handelsblatt.

Accordingly, the professional investors, also known as short sellers, increased their positioning for falling prices by almost 13 billion dollars in March – they have risen twice as much as in any other industry.

In total, the short positions now amount to almost $110 billion.

Volker Brühl, Managing Director of the Center for Financial Studies in Frankfurt, sees two reasons for this: “It’s either bets on falling prices or hedging against price risks. In both cases, however, it is about making a profit with the business.”

The short sellers therefore see further price risks. Overall, there are six lessons to be learned from hedge funds’ short positions in the banking sector.

1. North America and Europe in focus

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