- Sheikh fears default
- The firm also “drained” previously bought counterparty shares in the States
- Royal Group is ready to return to the market, but after the investment climate improves
The Royal Group investment company, which manages the capital of the Abu Dhabi royal family, has opened a short position on U.S. Treasury bonds. We are talking about “billions of dollars.”
This was reported by Bloomberg, citing its source. Like some other “whales” in the market, Royal Group is “dumping” long-term bonds amid growing panic over the U.S. debt crisis.
The exact amount in the position is unknown. But Bloomberg claims we’re talking about “billions of dollars.”
The source also claims that Sheikh Tahnoun bin Zayed Al Nahyan, the company’s manager, is concerned about the growing recession in the States.
Even earlier this year, the firm eliminated highly volatile stocks, shifting its focus to short-term, low-risk bonds. Moreover, Royal Group is also allegedly investing in digital assets, but the exact amounts are unknown.
It is noteworthy that in October, according to unconfirmed reports, Sheikh Tahnoon’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 portal’s source says that Royal Group is ready to increase its presence in the U.S. market after the Fed stops “tightening the screws.”
This is far from the only company to “dump” U.S. Treasury bonds with maturities of more than a month.
So, for example, Circle has significantly changed the structure of reserves USDC, eliminating all long-term bonds.
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