Hedge Funds

Kyle Bass warns of Japanese financial collapse...again


GAIM 2013: The Hayman founder repeats his bearish thesis; a 250-1 payoff? "I wouldn't sell nuclear holocaust risk in Dallas for one basis point."

Kyle Bass, founder and principal of Hayman Capital Management, repeated his thesis on a coming financial crash in Japan in a presentation at the GAIM USA hedge fund conference in Boca Raton, Fla. yesterday.
Bass said that Hayman, his $1.1 billion Dallas-based macro firm, has bought unspecified options--on Japanese government bonds and yen--with a notional value of nearly $500 billion that offer a potential payoff of more than 250 to one should the economic collapse he predicts occur.
"The convexity