February 29, 2012

Kyle Bass Hayman Capital - PIGS Banks Face Bank Runs

According to Kyle Bass of Hayman Capital Management, PIGS nations will leave the Eurozone. That is absolutely in line with the view of Felix Zulauf that EZ countries will leave because they need devaluation of their currencies and adjustment mechanism. In 2012, 2.5 trillion EUR debt must be rolled-over, at the same time when deposits are leaving the PIGS nation banks. J Kyle Bass points out that at the end, debt must be restructured and banks will face big losses. He recommends that we find stable banks outside the EZ, so we find safety for our money. Kyle Bass Japan views are still that the country will face debt crisis right after Europe.

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.