Does anyone know if there is such a thing as a pooled or structured vehicle for investing in bad debt? I understand that this type of vehicle exists for pooled mortgages, but I am specifically looking into unsecured debt.
I'm really looking to learn how the big I-Banks hedge their bad debt exposure. I know Goldman Sachs washed out most of their subprime mortgage debt because they were short a lot of mortgage debt contracts. Does this exist for other types of debt?
I'm guessing that it exists as a "SIV" that only the I-Banks sell to each other in unliquid markets, but I'd love to hear from anyone that knows anything else.
I'm really looking to learn how the big I-Banks hedge their bad debt exposure. I know Goldman Sachs washed out most of their subprime mortgage debt because they were short a lot of mortgage debt contracts. Does this exist for other types of debt?
I'm guessing that it exists as a "SIV" that only the I-Banks sell to each other in unliquid markets, but I'd love to hear from anyone that knows anything else.
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