Hedge funds have spotted money-making opportunities in Spain, betting that market fears over the southern European country's deepening debt crisis have made some assets too cheap relative to other securities.


The moves echo the earlier stages of the euro zone crisis, when hedge funds - renowned as being among the nimblest of investors - bought CDS - designed to pay out in the event of default - on Greece and other weaker euro zone countries.


A number of hedge funds bought Spanish CDS at the start of the month, say industry insiders, helping drive up the price to more than 500 basis points earlier this week from below 350 basis points in February.

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