phideaux
10-04-2011, 11:12 AM
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Tuesday, Oct 04 2011 3PM 16°C 6PM 15°C 5-Day Forecast (http://www.dailymail.co.uk/home/weather/index.html)
Meet the Texan investor who made millions from the credit crunch... and now he stands to make 65,000% profit if Europe goes down the drain
Kyle Bass founded hedge fund after saving $10million from Wall Street stint
Gambled against sub-prime mortgage bond market before it crashed
He has now started to bet against European countries including Greece
Set to increase money by 650 times from Greek bet if default happens
Keeps huge gold bars in his desk drawer and owns 20 million nickel coins
By Mark Duell (http://www.dailymail.co.uk/home/search.html?s=&authornamef=Mark+Duell)
It’s been a torrid three years for most people since the world economy began to go into meltdown. But not everyone has suffered.
Investor Kyle Bass has already made millions from the credit crunch and he is set to increase his money by almost 650 times from a Greek default.
He founded hedge fund Hayman Capital in Dallas, Texas, in 2006 in his late 30s after saving $10million from selling bonds for Wall Street firms.
http://i.dailymail.co.uk/i/pix/2011/10/03/article-2044363-0E344CF000000578-526_634x420.jpg In the money: Kyle Bass founded hedge fund Hayman Capital in Dallas, Texas, in 2006 after saving $10million from selling bonds for Wall Street firms
He made millions gambling against the sub-prime mortgage bond market - and now he’s betting on the collapse of whole countries in Europe.
Mr Bass’s story so far has been documented in Michael Lewis’s new book 'Boomerang: The Meltdown Tour' - serialised in The Sunday Times.
Mr Lewis charts how Mr Bass was one of only 15 people who placed ‘enormous bets that vast tracts of American finance would go up in flames’.
Mr Bass believed as the sub-prime market collapsed that the financial crisis was being hidden by rich western governments.
http://i.dailymail.co.uk/i/pix/2011/10/03/article-2044363-0E344D0000000578-826_634x508.jpg Clever man: Mr Bass made millions by gambling against sub-prime mortgage bond market - and now he's betting on the collapse of whole countries
He said these nations had taken on ‘dodgy securities worth trillions’, as worldwide debts doubled over just a few years to $195trillion.
'It may not be the end of the world. But a lot of people are going to lose a lot of money. Our goal is not to be one of them'
Kyle Bass
A big issue he identified was large banks being treated as ‘extensions of their governments, sure to be bailed out in a crisis’.
Mr Bass spoke to Harvard economics expert Kenneth Rogoff about sovereign balance sheets and finally realised the scale of the problem when he presented him with some research.
Professor Rogoff told Mr Bass: 'I can hardly believe it is this bad' after he had looked at their figures.
Mr Bass replied: 'If you don’t know this, who does?’ and thought: 'Holy s**t, who is paying attention?'
http://i.dailymail.co.uk/i/pix/2011/10/03/article-2044363-0E1DC89800000578-945_634x472.jpg Falling prices: Traders work on the floor of the New York Stock Exchange in Manhattan last week, as the Dow Jones suffered another bad month
‘The sub-prime mortgage crisis was more symptom than cause,’ Mr Lewis wrote. ‘Deeper social and economic problems that gave rise to it remained.’
'I thought: "Holy s**t, who is paying attention?"'
Kyle Bass on sovereign troubles
This made Mr Bass believe another bigger economic crisis was brewing - and he started to buy ‘credit default swaps’ on European countries, according to the book serialisation in The Sunday Times.
These let him bet against a bond’s price without owning it - like ‘default insurance on another person’s investments’.
He believes Greece, Portugal, Ireland, Switzerland, Italy and Spain are the countries least likely to be able to pay off their debts.
http://i.dailymail.co.uk/i/pix/2011/10/03/article-2044363-0E3004A900000578-125_306x423.jpg
http://i.dailymail.co.uk/i/pix/2011/10/03/article-2044363-0E301A4200000578-548_306x423.jpg
New Book: Michael Lewis's Boomerang: The Meltdown Tour - which features Mr Bass, left - is out this week
He bought Greek default insurance for 11 basis points - meaning insuring $1m of bonds would cost $1,100 dollars a year.
'We’ve bought a lot of this stuff'
Kyle Bass on his gold collection
A Greek default would make it pay down its debt by around 70 per cent, meaning every $1,100 bet would net him an astonishing $700,000, Mr Bass said.
He said his mother tells him to put his money in 'guns and gold'.
Mr Lewis recalled him pulling out a huge gold brick from his desk drawer and saying: 'We’ve bought a lot of this stuff.'
Mr Bass, who lives in a 40,000 sq ft house, has also bought 20 million nickels for $1million. He said the metal inside each coin is worth 6.8 cents.
‘It may not be the end of the world,’ Mr Bass added. ‘But a lot of people are going to lose a lot of money. Our goal is not to be one of them.'
http://www.dailymail.co.uk/news/article-2044363/Kyle-Bass-Meet-Texan-investor-millions-credit-crunch.html#
Tuesday, Oct 04 2011 3PM 16°C 6PM 15°C 5-Day Forecast (http://www.dailymail.co.uk/home/weather/index.html)
Meet the Texan investor who made millions from the credit crunch... and now he stands to make 65,000% profit if Europe goes down the drain
Kyle Bass founded hedge fund after saving $10million from Wall Street stint
Gambled against sub-prime mortgage bond market before it crashed
He has now started to bet against European countries including Greece
Set to increase money by 650 times from Greek bet if default happens
Keeps huge gold bars in his desk drawer and owns 20 million nickel coins
By Mark Duell (http://www.dailymail.co.uk/home/search.html?s=&authornamef=Mark+Duell)
It’s been a torrid three years for most people since the world economy began to go into meltdown. But not everyone has suffered.
Investor Kyle Bass has already made millions from the credit crunch and he is set to increase his money by almost 650 times from a Greek default.
He founded hedge fund Hayman Capital in Dallas, Texas, in 2006 in his late 30s after saving $10million from selling bonds for Wall Street firms.
http://i.dailymail.co.uk/i/pix/2011/10/03/article-2044363-0E344CF000000578-526_634x420.jpg In the money: Kyle Bass founded hedge fund Hayman Capital in Dallas, Texas, in 2006 after saving $10million from selling bonds for Wall Street firms
He made millions gambling against the sub-prime mortgage bond market - and now he’s betting on the collapse of whole countries in Europe.
Mr Bass’s story so far has been documented in Michael Lewis’s new book 'Boomerang: The Meltdown Tour' - serialised in The Sunday Times.
Mr Lewis charts how Mr Bass was one of only 15 people who placed ‘enormous bets that vast tracts of American finance would go up in flames’.
Mr Bass believed as the sub-prime market collapsed that the financial crisis was being hidden by rich western governments.
http://i.dailymail.co.uk/i/pix/2011/10/03/article-2044363-0E344D0000000578-826_634x508.jpg Clever man: Mr Bass made millions by gambling against sub-prime mortgage bond market - and now he's betting on the collapse of whole countries
He said these nations had taken on ‘dodgy securities worth trillions’, as worldwide debts doubled over just a few years to $195trillion.
'It may not be the end of the world. But a lot of people are going to lose a lot of money. Our goal is not to be one of them'
Kyle Bass
A big issue he identified was large banks being treated as ‘extensions of their governments, sure to be bailed out in a crisis’.
Mr Bass spoke to Harvard economics expert Kenneth Rogoff about sovereign balance sheets and finally realised the scale of the problem when he presented him with some research.
Professor Rogoff told Mr Bass: 'I can hardly believe it is this bad' after he had looked at their figures.
Mr Bass replied: 'If you don’t know this, who does?’ and thought: 'Holy s**t, who is paying attention?'
http://i.dailymail.co.uk/i/pix/2011/10/03/article-2044363-0E1DC89800000578-945_634x472.jpg Falling prices: Traders work on the floor of the New York Stock Exchange in Manhattan last week, as the Dow Jones suffered another bad month
‘The sub-prime mortgage crisis was more symptom than cause,’ Mr Lewis wrote. ‘Deeper social and economic problems that gave rise to it remained.’
'I thought: "Holy s**t, who is paying attention?"'
Kyle Bass on sovereign troubles
This made Mr Bass believe another bigger economic crisis was brewing - and he started to buy ‘credit default swaps’ on European countries, according to the book serialisation in The Sunday Times.
These let him bet against a bond’s price without owning it - like ‘default insurance on another person’s investments’.
He believes Greece, Portugal, Ireland, Switzerland, Italy and Spain are the countries least likely to be able to pay off their debts.
http://i.dailymail.co.uk/i/pix/2011/10/03/article-2044363-0E3004A900000578-125_306x423.jpg
http://i.dailymail.co.uk/i/pix/2011/10/03/article-2044363-0E301A4200000578-548_306x423.jpg
New Book: Michael Lewis's Boomerang: The Meltdown Tour - which features Mr Bass, left - is out this week
He bought Greek default insurance for 11 basis points - meaning insuring $1m of bonds would cost $1,100 dollars a year.
'We’ve bought a lot of this stuff'
Kyle Bass on his gold collection
A Greek default would make it pay down its debt by around 70 per cent, meaning every $1,100 bet would net him an astonishing $700,000, Mr Bass said.
He said his mother tells him to put his money in 'guns and gold'.
Mr Lewis recalled him pulling out a huge gold brick from his desk drawer and saying: 'We’ve bought a lot of this stuff.'
Mr Bass, who lives in a 40,000 sq ft house, has also bought 20 million nickels for $1million. He said the metal inside each coin is worth 6.8 cents.
‘It may not be the end of the world,’ Mr Bass added. ‘But a lot of people are going to lose a lot of money. Our goal is not to be one of them.'
http://www.dailymail.co.uk/news/article-2044363/Kyle-Bass-Meet-Texan-investor-millions-credit-crunch.html#