Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
March 22, 2012
Kyle Bass loves asymmetric bets
Kyle Bass of Hayman Capital prefers to make investments in situations that could earn the hedge fund extraordinary profits. He looks for asymmetric bets where the risk-adjusted-return is out of norm. For example by predicting in 2009 that Greece will restructure, he bought cheap CDS and that resulted in a bet where the risk/return is 1/500… It seems that today Kyle Bass is having similar bet but on Japan. He believes that the focus will soon be on Japan and the country will face a debt crisis within 2-3 years. According to unofficial information, Hayman Capital betted on Japan problems by CDS, swaptions, puts on Yen as well as options on JGB. It’s hard to predict the risk/return here but we believe it’s between 1/15 – 1/100. Kyle Bass has expressed his pessimism about the yen many times on different TV programs. His target is 120 USDJPY which is about 45% from current levels.
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
March 12, 2012
Kyle Bass: Gold is Going a Lot Higher
This is a transcript from an interview with Kyle Bass of Hayman Capital. He explains why he's so bullish on gold, with CNBC's Bob Pisani
Bob: Are you still bullish on gold?
Kyle Bass: I think that the pattern is set. The pattern is set that we are going to continue to monetize fiscal deficits by expanding central bank balance sheets. Call it how you wanna call it, LTRO, QE any kind of acronym that the powers want it to be called but I call it money creating out of thin air and that is why gold has a further to go.
Bob: aks what will happen to the price of gold if China and India economies slowdown:
Kyle Bass: When you think about the way that India is now... they have significant inflation, if they have stagflation we will continue to see gold going higher.
Bob: Can you explain the decision to buy physical gold?
Kyle Bass: It costs you certain amount of money to roll the contract. As far as I know it costs 19 basis points per year and the holding and insurance to keep physical gold is cheaper than that. From a Fiduciary perspective physical gold is a must. Kyle store and insure gold at HSBC.
Gold is currently taxed as collectable at 28%, should there be some change to that?
Kyle Bass: Gold must be taxed as every other asset that you own. It is just a simple asset. Piece of art work, collectibale-gold coin, equity must be taxed the same especially if held long-term.
There is so much talk about gold these days. Should we go back to a gold-standard?
Kyle Bass: I don't think so. I'm not an advocate of such. Ting an enourmas economy to one metal coming out of the ground would probably be a bad idea but ting it to a basket of goods and services might be a good idea. Because we need to limit the amount of capital created in the system.
I just don't understand the logic behind it.
I think that the people who are deemed to be gold bugs, you know, are talking to a portfolio to a certain, yes I own some but when I tire our whole economic future as a nation to that idea, if you think about rationality it's a bad idea.
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
Bob: Are you still bullish on gold?
Kyle Bass: I think that the pattern is set. The pattern is set that we are going to continue to monetize fiscal deficits by expanding central bank balance sheets. Call it how you wanna call it, LTRO, QE any kind of acronym that the powers want it to be called but I call it money creating out of thin air and that is why gold has a further to go.
Bob: aks what will happen to the price of gold if China and India economies slowdown:
Kyle Bass: When you think about the way that India is now... they have significant inflation, if they have stagflation we will continue to see gold going higher.
Bob: Can you explain the decision to buy physical gold?
Kyle Bass: It costs you certain amount of money to roll the contract. As far as I know it costs 19 basis points per year and the holding and insurance to keep physical gold is cheaper than that. From a Fiduciary perspective physical gold is a must. Kyle store and insure gold at HSBC.
Gold is currently taxed as collectable at 28%, should there be some change to that?
Kyle Bass: Gold must be taxed as every other asset that you own. It is just a simple asset. Piece of art work, collectibale-gold coin, equity must be taxed the same especially if held long-term.
There is so much talk about gold these days. Should we go back to a gold-standard?
Kyle Bass: I don't think so. I'm not an advocate of such. Ting an enourmas economy to one metal coming out of the ground would probably be a bad idea but ting it to a basket of goods and services might be a good idea. Because we need to limit the amount of capital created in the system.
I just don't understand the logic behind it.
I think that the people who are deemed to be gold bugs, you know, are talking to a portfolio to a certain, yes I own some but when I tire our whole economic future as a nation to that idea, if you think about rationality it's a bad idea.
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
March 11, 2012
Kyle Bass Likely Made $10 Billion on Greek CDS
This is an update on how much Kyle Bass possibly made from his CDS on Greek debt and how much will soon receive. We still do not have the official numbers but we believe the profit is about $10 billion which will put Hayman Capital on top of performing hedge funds as well as Kyle Bass in the billionaire's list.
It is unknown how much CDS Kyle bought but average CDS contract signed is for $10 million. According to unofficial information Bass bought $15 million of Greek CDS, and that means he will receive $10 billion USD when the insurance is paid. Bass might have bought more, in which case he might now be one of the richest people in the world but we still don't know.
Considering that he has $726 million assets under management and that about 20% of the assets were put in CDS and other instruments to bet against Greece, Portugal, Ireland, Japan... we believe that Greece bet is at least $15 million. As soon as we have the official numbers we will update this post.
More about his bet was posted in the previous post: Kyle Bass Profits 700 times on Greek CDS payout
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
It is unknown how much CDS Kyle bought but average CDS contract signed is for $10 million. According to unofficial information Bass bought $15 million of Greek CDS, and that means he will receive $10 billion USD when the insurance is paid. Bass might have bought more, in which case he might now be one of the richest people in the world but we still don't know.
Considering that he has $726 million assets under management and that about 20% of the assets were put in CDS and other instruments to bet against Greece, Portugal, Ireland, Japan... we believe that Greece bet is at least $15 million. As soon as we have the official numbers we will update this post.
More about his bet was posted in the previous post: Kyle Bass Profits 700 times on Greek CDS payout
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
March 10, 2012
Kyle Bass: Profits 700 times on Greek CDS Payout
Kyle Bass bought CDS on Greece debt in 2010 around $1,000 per $1 million debt. He has been an advocate about Greece going into disorderly default and triggering CDS payouts. So far Bass is wrong that Greece will face disorderly default as it seems that it’s controlled one, but still the CDS has been activated as there is credit event according ISDA. That will trigger the CDS payouts and Kyle Bass’s fund
Bass is known for his uncommon investment bets as well as talented mind. He currently holds physical gold. Platinum as well as 20 million 5 cent Canadian Nickels. His 700 times return on his investment will earn him many fans in the investment world. The true value of his holdings will be fully revealed when the payout rates are decided after an auction of the old Greek debt.
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
Hayman Capital
will earn about 700 times on his CDS investment. Let’s repeat again “70,000%” return on investment! We have no information how much CDS on Greek debt he purchased in 2010 but we believe that his fund will earn millions.Bass is known for his uncommon investment bets as well as talented mind. He currently holds physical gold. Platinum as well as 20 million 5 cent Canadian Nickels. His 700 times return on his investment will earn him many fans in the investment world. The true value of his holdings will be fully revealed when the payout rates are decided after an auction of the old Greek debt.
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
March 07, 2012
On Why Kyle Bass owns so much gold
"My opinion is very simple as a fiduciary... to the extent that you own gold and you are going to own it a long time --it's not a trade. It costs us about 90 basis points a year to roll it through financial futures contracts," he said.
"And then we went and looked at the COMEX. The COMEX at the time they had about $80 billion in open interest between futures and futures options. In the warehouse they had $2.7 billion of deliverables. So $80 billion in open interest - $2.7 billion in deliverables. We’re gonna own it a long time. You're on the board, as a fiduciary, what do you do? That’s an easy one. You go get it. So you go take a billion of $2.7 billion and you let them worry about the rest."
"When I talked to the head of deliveries at COMEX NYMEX, I was like, 'What if 4% of the people want deliveries?' He said, 'Oh Kyle, that never happens. We rarely ever get a 1% delivery.' And I asked, 'Well what if it does happen?' And he said, ‘Price will solve everything' And I said, 'Thanks, give me the gold.'
It is noteworthy to mention also that Kyle Bass owns physical platinum bars as well as Canadian nickels. It seems he is worried about runaway inflation and believes metals are best to protect him.
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
"And then we went and looked at the COMEX. The COMEX at the time they had about $80 billion in open interest between futures and futures options. In the warehouse they had $2.7 billion of deliverables. So $80 billion in open interest - $2.7 billion in deliverables. We’re gonna own it a long time. You're on the board, as a fiduciary, what do you do? That’s an easy one. You go get it. So you go take a billion of $2.7 billion and you let them worry about the rest."
"When I talked to the head of deliveries at COMEX NYMEX, I was like, 'What if 4% of the people want deliveries?' He said, 'Oh Kyle, that never happens. We rarely ever get a 1% delivery.' And I asked, 'Well what if it does happen?' And he said, ‘Price will solve everything' And I said, 'Thanks, give me the gold.'
It is noteworthy to mention also that Kyle Bass owns physical platinum bars as well as Canadian nickels. It seems he is worried about runaway inflation and believes metals are best to protect him.
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
March 06, 2012
J Kyle Bass recommends that investors stay in cash
Investors should be more in cash. To the extent that he is right about the order of debt events, the USD will be strong short to medium term and EUR and JPY will be weak.
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
March 05, 2012
Kyle Bass is worried about France and UK
The UK and France are both in trouble, according to Kyle Bass of Hayman. Bass said when you looked at a particular country's banking system such as Iceland, it didn't take a genius to figure out it was going to blow up.
"Regulators weren't paying attention to the size of the host country's banking systems in relation to the sovereign's ability to maintain losses," he said.
According to Hayman Advisors' estimates, the UK is in "big trouble" and France is in "huge trouble" just as the Europe as a whole is.
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
"Regulators weren't paying attention to the size of the host country's banking systems in relation to the sovereign's ability to maintain losses," he said.
According to Hayman Advisors' estimates, the UK is in "big trouble" and France is in "huge trouble" just as the Europe as a whole is.
Kyle Bass 2012
"If you think a 50% default in the private sector is what's going to save Greece, you're out of your mind."
"Does anyone know what Greece’s on-balance sheet financing cost is? Forget their market rates. What does it really cost them today for their weighted average cost of capital on balance sheet? Does anybody know? That’s interesting."
"We all know they’re in trouble, but no one looks at the numbers. They borrow at 4.4%. Their two-year money is at 100% and their 10-year money is at 27%. They borrow at 4 and they’re spending 16% on interest. For those of you who think that a 50% default in the private sector is what’s going to save Greece, you’re out of your mind. It is a full write down of what the Troika doesn’t own." So, it seems that this 70% haircut of the private sector holdings will not be enough, if Kyle Bass is right, and we will soon face the need of additional haircuts.
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
"Does anyone know what Greece’s on-balance sheet financing cost is? Forget their market rates. What does it really cost them today for their weighted average cost of capital on balance sheet? Does anybody know? That’s interesting."
"We all know they’re in trouble, but no one looks at the numbers. They borrow at 4.4%. Their two-year money is at 100% and their 10-year money is at 27%. They borrow at 4 and they’re spending 16% on interest. For those of you who think that a 50% default in the private sector is what’s going to save Greece, you’re out of your mind. It is a full write down of what the Troika doesn’t own." So, it seems that this 70% haircut of the private sector holdings will not be enough, if Kyle Bass is right, and we will soon face the need of additional haircuts.
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
March 03, 2012
Hayman Capital Partners: Psychology is on Top
Kyle Bass
believes that psychology is more important than the quantitative analysis that is why in his fund, they pay more attention to it and try to understand it. "We have been conditioned to believe there is always this savior out there," Bass said. "There's an optical backstop designed to make everyone believe countries can't default." "It's where we stand to day on Greece on Italy. I think it's really important to think through that psychology," he said. "Those optics are starting to come into question."Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
March 02, 2012
Kyle Bass Letter; Hayman Capital Letter
Kyle Bass Hayman capital, shared its most recent letter with us called “The Hidden Bank Run Across Europe”.
“As European leaders press forward with failed attempt after failed attempt to suppress borrowing costs, control spending, reduce deficits and prop up what the markets have already told us is a broken monetary system, the data tells us that the citizens of the most troubled and profligate nations are losing confidence in the Euro dream. Trust has been lost, confidence in the system is being lost, and the ultimate consequence of this break down – sovereign defaults —are imminent.”
View more Hayman Capital Letters
“As European leaders press forward with failed attempt after failed attempt to suppress borrowing costs, control spending, reduce deficits and prop up what the markets have already told us is a broken monetary system, the data tells us that the citizens of the most troubled and profligate nations are losing confidence in the Euro dream. Trust has been lost, confidence in the system is being lost, and the ultimate consequence of this break down – sovereign defaults —are imminent.”
View more Hayman Capital Letters
View more
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
Kyle Bass Bio
Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.
March 01, 2012
Kyle Bass: USA has more time than Europe and Japan
Hayman Capital Kyle Bass, shares that USA has more time until a debt crisis than Europe and Japan do. In his opinion, USA has 3-5 years and believes that Europe and Japan might accelerate it a little bit. It seems that the political elite think that USA has 10 years, but they are wrong. USA doesn’t have a lot of time for adjustments, and it seems the politicians are not doing what is needed so at the end, we will face the same fade as Japan and Europe. J Kyle Bass made pessimistic forecasts about the development of the European crisis as well as the coming one in Japan.
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