HenryTo Site Admin


Joined: 06 Aug 2004 Posts: 11735 Location: Los Angeles, California
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Posted: Wed Dec 19, 2007 9:46 am Post subject: Hayman Capital Partners |
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An account of how they went about shorting subprime. We don't know how much they made, but some numbers are bandied about:
http://www.bloomberg.com/apps/news?pid=20601170&refer=special_report&sid=amnq1owDbwx4
| Quote: | J. Kyle Bass, a hedge fund manager from Dallas, strode into a New York conference room in August 2006 to pitch his theory about a looming housing market meltdown to senior executives of a Wall Street investment bank.
Home prices had been on a five-year tear, rising more than 10 percent annually. Bass conceived a hedge fund that bet on a crash for residential real estate by trading securities based on subprime mortgages to the least credit-worthy borrowers. The investment bank, which Bass declines to identify, owned billions of dollars in mortgage-backed securities.
"Interesting presentation,'' Bass says the firm's chief risk officer said into his ear, his arm draped across Bass's shoulders. ``God, I hope you're wrong.'' |
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