Again, why would a bank make an obvious "going to lose its shirt" convertible/hybrid loan at all?
And how would that Bank hedge against 100% loss of the loan assuming Bank makes the loan? & assuming such a hedge trade were possible for 100% of the loan face, was it also possible to hedge ....1000% of the face?
then
Could that same Bank report a steady increasing profit year in year out through the above activities?
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.