DB ABS/secondary CDO desk

" I hear they are up over a yard"

how much is a yard, for those who might not know?

And it seems highly unlikely.

My friend interned on the desk and they apparently crossed a billion (yard) while he was there. I highly doubt this was realized gains, but I guess it is pretty good when it is netted with all the other toxic stuff I assume they trade.

yup a yard is a billion.

seems VERY unlikely to me.

how many people work on the desk?

I have heard from someone who works at DB that the desk has been shorting the ABX since the beginning of 2007 and they continue to be on the right side of the trades (profitable side), but I don't know/think the desk is up a yard...I would agree that the desk is a main market making in these products though

I am pretty sure they have no more than twenty people on the desk. They apparently do all secondary ABS and CDOs which I think some banks might split.

up 1bb would not be that surprising, but this was an extremely unusual year.

db is definitely not the biggest-volume abx traders (lehman owns it hands down).

i would be wary that abs/cdo markets are going to be shrinking substantially for at least a couple years. maybe not the best time to get into this specialty.

interesting

going to be a lot of distressed abs / cdo in the market as the CDOs liquidate

someone stands to make a lot of money