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Citi urges hedge funds to short CMA CGM bonds amid shipping outlook shift

The call is tied to concern that a debt rally may fade as new container shipping capacity comes to market.

Reported · Written up by our desk · Hedge Funds

Citigroup is advising hedge fund clients to take short positions in bonds issued by French shipping group CMA CGM, according to a report cited by Hedgeweek, with the stance linked to a change in the shipping outlook.

The recommendation centers on Citi’s view that the recent rally in CMA CGM’s debt could be difficult to sustain as additional container shipping capacity enters the market.

Hedgeweek said Citi’s argument is that the supply increase could pressure the company’s credit over time, making shorting the bonds a way to express that view.

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