Morgan Stanley Tips bet 'made sense', dealers say
Big curve flattening bet attributed to Morgan Stanley was reasonable, traders say - one rival exited similar position just in time
An alleged short position in long-dated Treasury Inflation Protected Securities (Tips) is thought to have caused stinging losses for Morgan Stanley – it certainly resulted in a barrage of negative headlines – but rival dealers say the trade idea made sense, even if the size of the bet was too aggressive.
In late June, dealers say Morgan Stanley took a short position in 30-year Tips estimated at
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