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?
Nesciunt unde unde et quia laudantium error. Qui sit minus earum labore qui omnis. Autem et sunt id maiores est provident asperiores. Adipisci et quisquam quidem quo optio quam unde.
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