The Blaze
In the first trading day following S&P’s announcement that the U.S. government credit rating would go from Triple-A down to AA+, U.S. stocks have sharply declined and investors are scrambling to rid themselves of risky assets. With Wall Street in disarray, one investor is smiling after having walked away from the crisis possibly 10 billion dollars richer. ETF Daily News reports that the investor bet on the downgrade, and is now heavily benefiting from it:
“Someone dropped a bomb on the bond market Thursday – a $1 billion Armageddon trade betting the United States will lose its AAA credit rating. In one moment, an invisible trader placed a single trade that moved the most liquid debt market in the world. The massive trade wasn’t placed in bonds themselves; it was placed in the futures market. The trade was for block trades of 5,370 10-year Treasury futures executed at 124-03 and 3,100 Treasury bond futures executed at 125-01.” Read More
