@2009worstyearever Those guys had to really pull teeth to get banks to take them seriously and take their money, perhaps it just wasn't his focus to jump through hoops entering an OTC instrument.
@ludosophist Of course. The point is "we werent set up" because "its too bureaucratic" isnt the same as "I didnt want to bother with jumping hooks for oxbridge cunts who wouldnt hire me when I was just starting out"
One is a capacity question, the other is a choice question.
I want to add, the Subprime trade wasn't objectively the best trade of the decade, XLF puts were trading at a pretty low IV in late 2007 and would have delivered a similar risk/reward profile to CDS on subprime-laden CDOs. Of course, this is all stated in hindsight, if I were looking for a contrarian thesis at the time, digging into the books and taking special cheap Put positions via CDS would have felt higher probability to me.
lol, I love henreys body language when they play video clips
HillcrestCapital 4 months ago 3
"We passed on the trade because we werent set up for the subprime trade"
Oh Hugh, the first think you've said that is an outright lie. If a two man, 30 million dollar hedge fund can do it so could you.
2009worstyearever 4 months ago
@2009worstyearever Those guys had to really pull teeth to get banks to take them seriously and take their money, perhaps it just wasn't his focus to jump through hoops entering an OTC instrument.
ludosophist 4 months ago
@ludosophist Of course. The point is "we werent set up" because "its too bureaucratic" isnt the same as "I didnt want to bother with jumping hooks for oxbridge cunts who wouldnt hire me when I was just starting out"
One is a capacity question, the other is a choice question.
2009worstyearever 4 months ago
@2009worstyearever
I want to add, the Subprime trade wasn't objectively the best trade of the decade, XLF puts were trading at a pretty low IV in late 2007 and would have delivered a similar risk/reward profile to CDS on subprime-laden CDOs. Of course, this is all stated in hindsight, if I were looking for a contrarian thesis at the time, digging into the books and taking special cheap Put positions via CDS would have felt higher probability to me.
ludosophist 4 months ago