Friday, June 12, 2020 10:04:45 PM
Kyle Bass Eyes 200-to-1 Leverage for New Bet on Hong Kong Crash
https://www.newsmax.com/finance/investinganalysis/kyle-bass-hong-kong-crash-currency/2020/06/10/id/971549/
The Dallas-based founder of Hayman Capital Management is starting a new fund that will make all-or-nothing wagers on a collapse in Hong Kong’s currency peg
Bass, best known for his prescient bet against subprime mortgages before the 2008 financial crisis, will use option contracts to leverage the new fund’s assets by 200 times, the people said, asking not to be identified discussing private information. While the strategy is designed to generate outsized gains if Hong Kong’s currency tumbles against the dollar, investors stand to lose all their money if the peg is still intact after 18 months.
The trade is audacious even for Bass, who profited handsomely during the subprime crisis but has since had less success with doomsday calls on everything from Japanese government bonds to the Chinese yuan. A vocal critic of China’s Communist Party, the 50-year-old investor wrote in a Newsweek op-ed last month that Hong Kong has become “ground zero for the ideological clash between democracy and heavy-handed Chinese communism.”
By taking aim at the city’s currency, Bass is betting he can time the demise of a dollar peg that has survived repeated speculative attacks since 1983 and wrongfooted big-name investors including George Soros.
EWH (HK), EWT(TW), EWY(KR), EWJ(JP), EWM(Malaysia)
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East Asia ETF Breakdown: Hong Kong, Malaysia, And South Korea
https://seekingalpha.com/article/4208155-east-asia-etf-breakdown-hong-kong-malaysia-and-south-korea
This article is to initiate a comparative analysis on exchange-traded funds within the Emerging Market segment. Countries in discussion are Hong Kong, Malaysia, and South Korea. The Malaysia and Hong Kong ETFs are cost efficient options compared to the South Korea one.
https://www.newsmax.com/finance/investinganalysis/kyle-bass-hong-kong-crash-currency/2020/06/10/id/971549/
The Dallas-based founder of Hayman Capital Management is starting a new fund that will make all-or-nothing wagers on a collapse in Hong Kong’s currency peg
Bass, best known for his prescient bet against subprime mortgages before the 2008 financial crisis, will use option contracts to leverage the new fund’s assets by 200 times, the people said, asking not to be identified discussing private information. While the strategy is designed to generate outsized gains if Hong Kong’s currency tumbles against the dollar, investors stand to lose all their money if the peg is still intact after 18 months.
The trade is audacious even for Bass, who profited handsomely during the subprime crisis but has since had less success with doomsday calls on everything from Japanese government bonds to the Chinese yuan. A vocal critic of China’s Communist Party, the 50-year-old investor wrote in a Newsweek op-ed last month that Hong Kong has become “ground zero for the ideological clash between democracy and heavy-handed Chinese communism.”
By taking aim at the city’s currency, Bass is betting he can time the demise of a dollar peg that has survived repeated speculative attacks since 1983 and wrongfooted big-name investors including George Soros.
EWH (HK), EWT(TW), EWY(KR), EWJ(JP), EWM(Malaysia)
East Asia ETF Breakdown: Hong Kong, Malaysia, And South Korea
https://seekingalpha.com/article/4208155-east-asia-etf-breakdown-hong-kong-malaysia-and-south-korea
This article is to initiate a comparative analysis on exchange-traded funds within the Emerging Market segment. Countries in discussion are Hong Kong, Malaysia, and South Korea. The Malaysia and Hong Kong ETFs are cost efficient options compared to the South Korea one.
My post is for Your Eyes only and my entertainment
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