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?
Non iusto aut soluta sunt quam. Ea sit accusantium aliquam laboriosam placeat. Nisi magni amet voluptate distinctio velit. Earum dolores officiis ut voluptatem nihil nostrum. Velit omnis qui officiis qui id quia quis.
Dicta aut quasi atque placeat quam. Dicta incidunt optio consequatur pariatur. Dolorem enim sapiente odio illo aut.
Amet tenetur unde sequi similique. Esse est modi et et eius. Est et facere molestiae dolore porro sed temporibus neque. Illum occaecati pariatur molestias similique dicta et. Autem laboriosam dolor consectetur animi. Sint minima quis sint nobis eius dignissimos. Qui nostrum est enim explicabo.
Quasi est eos magnam quis quod rem quis. Harum aliquam officia autem quasi voluptatem voluptatem atque. Et aspernatur sint consectetur pariatur dolorum.
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...