Hedge funds have taken record short positions in the debt and equity of Aston Martin, betting that the luxury carmaker will continue to struggle after one of the most disastrous stock market debuts of recent years.
The carmaker has given investors a rough ride since it floated in October, with a 73 per cent decline in its share price that has wiped more than £3bn from its market capitalisation.
Hedge funds have turned to short selling the company’s debt, even though it costs large amounts in fees. Sterling-denominated bonds that back the group have become the most expensive among any UK corporate debt for new borrowers, same maturity.
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