Launches & Closures Hedge Funds

Hayman rides credit wave into municipal fund

by

Kyle Bass
Following his spectacularly successful short-subprime trade, Hayman Capital Partners founder Kyle Bass is launching municipal bond and real estate ventures to capitalize on the volatile credit environment.

Hayman Municipal Opportunities Fund is set to launch in May with $200 million, including $25 million from Hayman Capital Partners, and will invest in high-yielding short- and long-term municipal securities and other muni-linked assets, such as auction rate securities. The firm expects to profit from short-term muni bond rates, which are currently yielding far more than U.S. Treasury bonds, and long-term rates, which Hayman expects to continue outperforming