Best distressed trades of the decade thread?

Hi everyone,There was a thread sometime ago going over the best trades of the decade, mostly on the distressed side but I think it was pretty general and I just can't find it.WSO is good at a lot of things but the search function is not one where it excels so I'm tapping the collective wisdom of the community: can anyone share that piece of history here?Thanks!

Edit: Found it!

https://www.wallstreetoasis.com/forums/favorite-d…

Hedge Fund Interview Course

  • 814 questions across 165 hedge funds. Crowdsourced from over 500,000 members.
  • 11 Detailed Sample Pitches and 10+ hours of video.
  • Trusted by over 1,000 aspiring hedge fund professionals just like you.

Comments (5)

Most Helpful
Oct 8, 2021 - 6:43am

Shah pulled off a couple of big ones on the "manufactured default trade" but the problem is that is not a repeatable trade and eventually people just stop participating in the single-name CDS market if they know you are on the other side. Funnily enough, while I rate Shah highly as an investor, his fund hasn't been able to raise significant money since he left GSO.  

I think in recent years some of the trades that I really admire are the outright shorts just given the high coupon drag (negative carry) and cost of borrow, you really needed to be sure about both how the situation would play out and timing. So guys who shorted Debenhams bonds at par, or Thomas Cook bonds at par, or even names like Abegoa or Isolux Corsan (back in 2015/2016) I felt those were great trades. In recent years, you have to like both the Hertz and Europcar ideas on the long end, and even just big picture trades like Ackman buying protection on the credit market just before covid hit spreads. 

  • 5
Oct 8, 2021 - 10:57am

Rem tempore magnam voluptatem nesciunt autem deleniti. Dolorem voluptatum tempora totam velit culpa dolorum voluptatem ut. Magnam sequi sed est necessitatibus. Qui ut tenetur doloribus nesciunt.

Start Discussion

Total Avg Compensation

October 2021 Hedge Fund

  • Vice President (19) $498
  • Director/MD (10) $359
  • NA (5) $306
  • Portfolio Manager (7) $297
  • Manager (4) $282
  • 3rd+ Year Associate (19) $272
  • 2nd Year Associate (28) $241
  • Engineer/Quant (51) $237
  • 1st Year Associate (64) $187
  • Analysts (193) $166
  • Intern/Summer Associate (16) $122
  • Junior Trader (5) $102
  • Intern/Summer Analyst (213) $82