- Sheikh fears default
- The company also “leaked” previously purchased shares of counterparties in the States
- Royal Group is ready to return to the market, but after the investment climate improves
Investment company Royal Group, which manages the capital of the royal family of Abu Dhabi, opened a short position in US Treasury bonds. It’s about “billions of dollars”.
The portal reports Bloomberg citing your source. Like some other “whales” in the market, the Royal Group is “draining” long-term bonds amid growing panic over the US debt crisis.
The exact amount of the position is unknown. But Bloomberg claims that we are talking about “billions of dollars.” The source also claims that the managing director of the company, Sheikh Tahnoun bin Zayed Al Nahyan, is concerned about the growing recession in the United States.
At the beginning of the year, the firm liquidated high-volatility stocks, shifting its focus to short-term, low-risk bonds. Moreover, the Royal Group also allegedly invests in digital assets, but the exact amounts are unknown.
It is noteworthy that in October, according to unconfirmed reports, Sheikh Tahnoun’s company planned to invest up to $10 billion in shares of American and European firms. It is possible that these positions were eventually liquidated in favor of short-term bonds.
The source of the portal states that the Royal Group is ready to increase its presence in the US market after the Fed stops “tightening the screws”.
This is far from the only company that “drains” US Treasury bonds with a maturity of more than a month. So, for example, Circle significantly changed the structure of USDC reserves by liquidating all long-term bonds. Robert Kiyosaki also warned about the coming crisis. Here you will find new investment tips from “trading gurus”.
