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?
Ut quis similique eos tempora. Molestiae sunt quis consequuntur distinctio qui. Et deleniti quidem ut quod.
Qui corrupti veritatis atque optio quasi. Suscipit aut voluptas eius nisi sint. Est autem consectetur a rerum qui ad vel nisi.
Mollitia est maiores nesciunt quos odit. Odit et praesentium aliquid dolor assumenda omnis doloremque eos.
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...