Kyle Bass December Investor Letter

Thanks for the link!

Thanks for the post...Kyle Bass is one smart man

http://www.zerohedge.com/news/neutron-bomb-capital-calculations-and-kyl…

.....check out the video interview near the bottom of the page

nice share.

Very good letter / interview... Kyle Bass is very, very smart

This guy is like the Daddy Bear of all financial Bears. Very pessimistic, but his analysis seems sound and he has been right before.

Funny how all the "best" hedge fund managers always look at where their trade can go WRONG. So many people try to find the facts that validate their opinion rather than the reverse. It's easy to make something seem logical, its finding its faults that you really test a theory. George Soros, Kyle Bass, etc. seem to take the reverse route, and they seem pretty damn good at it.

Funny how everyone listens to Kyle Bass now.

i keep on raving on about him and this senior guy on my desk just says: "philip, why don't you idolise warren buffett instead of these pessimistic one hit wonders....?" i cant stand listening to my colleagues being all bullish when in fact the world is crashing...

Great read.

One small portion I didn't quite understand was this "churning" of collateral. I understood why investors are reluctant to put up more collateral thus leading to initiatives for lowering collateral standards. What and how does "churning" relate to this? Is it a way of explaining that the collateral that is normally put up helps generate revenue by being packaged along with securities? Or is it a concept of liquidity (i.e. the grease) which allows security lending?

Sorry, maybe I'm missing something simple here. Good work Jeff

i don't trust this guy. i think he's pushing his own agenda. he seems transparently scared about his own portfolio. I hope I'm wrong.

Thanks cplpayne. That is interesting-they reinvest the collateral itself. I assumed that the collateral was a means to bolsters securities lending (collateral there to back/support investment in case it sours). I never realized they actually invest excess collateral. Interesting.

Anyway-why do you think he has his own agenda chuck? Though I will admit I am surprised that his letters to investors are so available to the public.

Eh seems OK. What is his background? I agree with his stance on European funding issues (both at the banks and sovereign level), but he's definitely missing part of the picture. I also think his JGB CDS position is garbage. He seems like smart guy who can cut through markets well but doesn't understand things as well as he thinks he does.