Sideways: Is the Pope long synthetics?

The Vatican can build on its successful credit default swap exposure to Hertz and other corporates by going long a new ESG synthetic index.

There was outrage in certain quarters when a report in the Financial Times on October 8 said that a Vatican investment portfolio had purchased structured notes that included default swap exposure to Hertz, the car rental firm that filed for bankruptcy in May.

The Pope gave a speech on the same day that could be taken as criticism of the deal, which was among many unorthodox investments made under the supervision of a cardinal who has since been stripped of his duties.

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