Hugh Hendry spoke about why he’s shorting China via Japanese CDS today at the Grant Interest Rate Observer conference today.
In the following presentation, he explains his trade in 20 charts that are of course, bursting with eccentric personality, just like he is.
In short, his argument is, everyone is over-invested in China.
A great example he gives of why a correction is coming is that there’s a steel company that recently started selling olive oil and wine too, which essentially says that no one’s building much anymore in China.
Hendry is shorting China via Japanese CDS, so he doesn't think Japan's credits are investment-grade at all.
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