Naked short-selling has been blamed for many a market evil in recent years. Not so much any good.
Well, here’s one in the controversial practice’s corner: South Korea may allow institutional investors to short-sell bonds in an effort to boost liquidity in its nascent fixed-income market. Now, it isn’t the short-selling, per se, that will boost liquidity, but the move could win Seoul a coveted place in Citigroup’s World Government Bond Index. And then, just try to keep the money from rolling in.
Brazil is. They absolutely do not want your money down there. So they’re gonna tax American depositary receipts of Brazilian companies, trying to keep dollars up here and the real trading nice and low against the greenback.
The 1.5% tax on ADRs went into effect yesterday. It follows a 2% tax on foreign investments the country imposed last month. Next year, the country plans to begin putting to death anyone who utters the acronym “BRIC.”
Seoul to allow naked short selling of bonds [FT]
Brazil Hits Its ADRs With Levy In Fresh Bid To Tame Real [WSJ]
@1, I think it is perfectly clear.
-Greg Michaels
Typo once, Shazam on you.
Typo twice, Shazam on me.
-The Ghost of Greg’s Blanus
FT link points to WSJ article….
Does this mean there is now a 3.5% tax on Brazilian waxes?
Next u: short selling kimchi.
South Korea will likely continue to grow and become a major competitor in the SE Asia region.
They are hard working and productive people and their company profits show it (e.g., Samsung.)
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