(Bloomberg) — Hedge funds that bought credit insurance on Wirecard AG debt are among those in line for a windfall of as much as $212 million after the disgraced German payments company filed for insolvency last week.A committee of traders meets on Tuesday to decide whether Wirecard has gone through a so-called bankruptcy credit event, triggering payouts to holders of credit-default swaps. These contracts are commonly used by hedge funds to make bets on a company running into trouble as well as by bond investors to hedge their exposure.Wirecard filed for court protection in Munich on June 25 after disclosing …read more
Source:: Yahoo Finance
