BBC’s Hardtalk recently featured Kyle Bass, Founder of Hayman Capital, a hedge fund based in Dallas, Texas to talk about global markets, asymmetric market bets and the sovereign debt crisis. Bass likes to make asymmetric bets to hedge his long portfolio of financial assets against black swan events and has made a considerable amount betting on the subprime mortgage and sovereign debt crises. His next bet is on Japan, based on demographics, interest rates, and its ability to service debt. People have been waiting for this bet to come due for over a decade, but Bass believes the time is now.
Video below (hat tip Paul Kedrosky)
Also see Bass in previous videos from February
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Kyle Bass on Japanese Insolvency and Systemic Risk in the Global Economy
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Kyle Bass: At municipal level, it’s “open season for defaults”