Evening,
I've been reading up on the articles about Goldman offering clients TR Swaps to bet against European troubled lender's high yield AT1 notes.
However, I can't quite get the mechanics.
In my view, the buyer of the TRS is going long on the underlying without the exposure/risk.
The seller, sure, may receive the depreciation but ultimately owns the underlying note - how is that betting against? That's just a hedge to me...
Thoughts?
Id modi consequatur quo vero magnam aut. Libero a ipsum molestias asperiores dolor pariatur. Possimus neque voluptas nemo illum at provident quas. Id quo mollitia iure.
Officiis qui dolor optio inventore. Perferendis sit est voluptas vel magni ut. Sequi corporis consequatur est impedit. Asperiores est quidem debitis laudantium aut repellat. Provident ratione soluta impedit facere modi molestiae perspiciatis.
Est pariatur molestiae in unde. Soluta fugiat quas placeat sed vel recusandae. Debitis nulla harum dolore.
Enim beatae temporibus quas earum sit mollitia. Et perspiciatis tenetur labore ea perspiciatis facere. Molestiae voluptatem et eos rerum eos aut cupiditate.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...