May 2, 2012 3:37 am

Who’s selling?

From Mr Jonathan Reiss.

Sir, You report (“Hedge funds bet against the eurozone”, April 28) that large hedge funds are buying credit default swaps on German Bunds. Who are they buying from? In the event that Germany defaults, which institution is guaranteed to be solvent to pay off on the bet? Perhaps an insurance company such as AIG would be a suitable seller.

Jonathan Reiss, Analytical Synthesis, New York, NY, US

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