I am not knowledgeable about Derivatives.
My question is: If Soros has taken a large short position, is there anything he can now do to trigger problems with the Derivatives.
Share prices drop below a certain level, loan covenant price requirements get triggered, sure. The share’s credit default swaps would be re-priced as banks move on the loan covenant provisions.
DB has fallen to 10.22.
And a big client run, has begun:
The Run Begins: Deutsche Bank Hedge Fund Clients Withdraw Excess Cash | Zero Hedge
The Run Begins: Deutsche Bank Hedge Fund Clients Withdraw Excess Cash
by Tyler Durden
Sep 29, 2016 12:34 PM
Deutsche Bank concerns just went to ‘11’ as Bloomberg reports a number of funds that clear derivatives trades with Deutsche Bank AG have withdrawn some excess cash and positions held at the lender, a sign of counterparties’ mounting concerns about doing business with Europe’s largest investment bank.
While the vast majority of Deutsche Bank’s more than 200 derivatives-clearing clients have made no changes, some funds that use the bank’s prime brokerage service have moved part of their listed derivatives holdings to other firms this week, according to an internal bank document seen by Bloomberg News.
Millennium Partners, Capula Investment Management and Rokos Capital Management are among about 10 hedge funds that have cut their exposure, said a person familiar with the situation who declined to be identified talking about confidential client matters.