Did Basis Traders Save The Euro-Zone (For Now)?

While the standard run-of-the-mill hedge fund trader has been vilified as a short-selling scoundrel, we have pointed again and again to the sometimes impressive and impactful effects this rabble of speculators can have. In the US corporate bond market last year and early this, CDS-Bond basis traders were often the busiest providers of demand at bond auctions (since concessions were solid and this trade somewhat locks that gain in). These buyers-of-bonds simultaneously buy CDS protection to

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