Big Short’s Eisman Is Shorting U.K. Banks on Brexit
– Eisman says U.K. is one of the biggest risks globally
– He is betting against two UK banks in the lead up to Brexit
– Eisman may short 50 other UK firms if “Trotskyite” Corbyn becomes UK PM
– Eisman is famous for betting against the US housing market ahead of the 2008 subprime-mortgage crisis
The hedge-fund manager famous for betting against the US housing market ahead of the 2008 crash is shorting a pair of British bank stocks in anticipation that the UK falls out of the European Union without securing a Brexit deal.
“I’m shorting two stocks in the UK,” he told a conference in Dubai over the weekend, as reported by Bloomberg. He wouldn’t name the companies.
He reportedly told the conference that while he expects the UK to secure a deal with Brussels, he then expects that deal to be rejected in the UK parliament, ultimately forcing Britain out of the bloc without a deal.
Bloomberg notes that Metro Bank, and CYBG, the parent company of Clydesdale Bank and Yorkshire Bank, are the two most shorted UK financial stocks.
Some 6.6% of Metro Bank’s stock is currently being shorted, data from Castellain Capital’s Short Interest Tracker showed on Monday morning.
Eisman said that while he is currently shorting just two UK stocks, that number could rise as high as 50 if Labour Party leader Jeremy Corbyn were to become prime minister, because he believes Corbyn’s policies would be detrimental to the UK economy.