Restructuring is the only one way out of this debt mess, and "restructuring means default." Kyle Bass, managing partner of Hayman Capital, told CNBC. He believes that it will be a hard defaul and then will be a hard to stop the contagion. The EZ will have 17 different TARPs in his opinion. In USA it was easier, but in Europe, every zone member will have to baioul it's banks alone. Europe will go in recession and the asset markets will go down, but still banks will not fail as they will be supported at the end.
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.
February 24, 2012
February 22, 2012
Kyle Bass continues to favor the USD
Kyle Bass of Hayman Capital, continues to prefer the USD and keep his negative views on the EUR and YEN prospectives. According to unofficial informations, Kyle Bass holds most of his cash in USD. That is not unexpected, as he expects big deflation, crashes of European countries and Japan. It seems that a long USDJPY and short EURUSD, might prove to be profitable positions long-term. Still, Bass keeps his hedgies of physical gold, nickels, farmland and platinum.
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.
February 12, 2012
Kyle Bass Recommends Investing in Productive Assets
This is not a cyclical rebound from a crisis. You shouldn't be buying stocks because a low P/E ratio, because the E is wrong. We’re going to see declines, and people don’t know how to position themselves for declines.
If you’re an individual you need to be much more conservative then you even think you need to be. Return of capital is much more important in the next few years than return on capital.
In the environment we’re talking about here, the U.S. dollar should be fine in the short to medium term, if we’re right about Europe and Japan. I think you should be more in cash, and hanging onto productive assets and less invested in financial assets (stocks, derivatives).
Productive assets like farmland, real estate could still experience losses but they should provide a better inflation hedge.
I took physical delivery of gold, and it had to do with the fractional reserve nature of the COMEX.
What’s going to happen in Europe is going to happen very soon. The 30-year bond rate in the U.S. could go lower than 2% if money starts running to the U.S. during the upcoming European sovereign crisis.
I don’t get paid to be an optimist or a pessimist, I get paid to be a realist. Being a realist in this scenario is pretty negative.
Don’t believe these governments, when they tell you that everything is going to be fine….think about Mexico in 1994….if you remember the crisis, the day before the government devalued 60% they said they wouldn’t devalue. The government can never tell you what they are about to do….the key takeaway is develop your own opinion.
Source: BusinessInsider
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.
If you’re an individual you need to be much more conservative then you even think you need to be. Return of capital is much more important in the next few years than return on capital.
In the environment we’re talking about here, the U.S. dollar should be fine in the short to medium term, if we’re right about Europe and Japan. I think you should be more in cash, and hanging onto productive assets and less invested in financial assets (stocks, derivatives).
Productive assets like farmland, real estate could still experience losses but they should provide a better inflation hedge.
I took physical delivery of gold, and it had to do with the fractional reserve nature of the COMEX.
What’s going to happen in Europe is going to happen very soon. The 30-year bond rate in the U.S. could go lower than 2% if money starts running to the U.S. during the upcoming European sovereign crisis.
I don’t get paid to be an optimist or a pessimist, I get paid to be a realist. Being a realist in this scenario is pretty negative.
Don’t believe these governments, when they tell you that everything is going to be fine….think about Mexico in 1994….if you remember the crisis, the day before the government devalued 60% they said they wouldn’t devalue. The government can never tell you what they are about to do….the key takeaway is develop your own opinion.
Source: BusinessInsider
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.
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