George Soros' fund has purchased around $2bn of European government bonds previously held by collapsed brokerage MF Global, according to reports.
The Wall Street Journal, citing people close to the matter, has reported that Soros bought the bonds for below market value when KPMG, MF Global's bankruptcy administrator, offered leftover bond holdings to big investors. MF Global had accumulated $6.3bn in short-term European sovereign debt before its collapse, $3.2bn of which was from Italy. The Italian position in particular worried investors and ratings agencies, and precipitated its bankruptcy on 31 October. MF Global's eurozone debt positions were held in a trading account, its practice of marking its book to market causing a li...
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