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A volatile cocktail of decade-high insolvency rates and booming investor appetite has driven short-seller Bronte Capital to begin betting against corporate debt, hoping to cash in if the companies behind the loans go bust.
Brontes John Hempton has told his inventors that the so-called junk rally which this year drove global equities to their best quarter since 2019 had allowed very suspect companies to obtain billions of dollars of debt.
More than 900 Australian companies entered administration in February,
Because of this, Mr Hempton said, the high-…
Read the full article at: https://www.afr.com/markets/equity-markets/bronte-capital-s-big-bet-on-more-companies-going-insolvent-20240327-p5ffn9