Even though Tesla’s market value has more than doubled since the year began, many funds are seeing an opportunity to short Tesla. Leading this charge is a Danish hedge fund by the name of Asgard Credit.
The move from Asgard Credit Fund is being replicated by many funds, however due to Asgards 2019 performance which equated to 29% returns, many have begun paying particular attention to the popular move.
Why are funds shorting Tesla Bonds
According to Asgard, they believe that Tesla is currently overpriced and have stocked up on credit-default swaps.
Daniel Pederson, Asgard Credit Fund CEO said;
“It’s mispriced, Tesla could be upgraded to BB during 2020 but even in that scenario the credit spread is still too tight”.
“We think it’s a mispricing in the credit market, but not necessarily in the stock market.”
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