Besides the risky bet on further quantitative easing, another hedge fund favorite has become purchasing Greek sovereign debt. Some of the hedge funds amassed such large positions of Greek debt, that they may have quite some bargaining power in the upcoming debt restructuring. Because the EU and IMF are going to ask for voluntary write-offs, in order to avoid a formal "bankruptcy", which would trigger the massive CDS market, the idea behind this speculation is to reject any kind of haircuts on their share of debt, and therefore pocket the "defaulted amount".
