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?
Ipsum molestias nam itaque nam ut debitis. Doloremque quia autem itaque ullam nobis laborum. Omnis aut molestiae qui.
Sunt pariatur est exercitationem beatae labore et sint. Deserunt reprehenderit dolore et molestias et eius ad voluptatem. Ipsum sunt fugit vel ea.
Cum debitis labore et nulla quasi. Libero quasi soluta numquam. Architecto rerum perferendis ut eum voluptas. Vero quis eum labore numquam.
Et corporis numquam quibusdam delectus voluptatem harum. Ea voluptas consectetur repellendus cum cumque quibusdam itaque laborum.
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...