Comments on: How a lone value investor thought up the subprime swaps market. http://sovereignspeculator.com/2010/03/04/how-a-lone-value-investor-thought-up-the-subprime-swaps-market/ Thoughts on the markets and the decline of the west Mon, 20 Dec 2010 21:01:43 +0000 http://wordpress.org/?v=2.6 By: Graphite http://sovereignspeculator.com/2010/03/04/how-a-lone-value-investor-thought-up-the-subprime-swaps-market/#comment-8670 Graphite Thu, 04 Mar 2010 17:02:12 +0000 http://sovereignspeculator.com/?p=4104#comment-8670 A lot of these CDS's were used to create synthetic CDO's which were sold on by the investment banks to fixed income investors like pension funds and municipalities. CDO investors were probably the biggest bagholders for the Burry/Paulson trades. Paulson in particular has come under fire for possibly intentionally structuring synthetic CDO deals with the worst possible underlying reference mortgages. A lot of these CDS’s were used to create synthetic CDO’s which were sold on by the investment banks to fixed income investors like pension funds and municipalities. CDO investors were probably the biggest bagholders for the Burry/Paulson trades. Paulson in particular has come under fire for possibly intentionally structuring synthetic CDO deals with the worst possible underlying reference mortgages.

]]> By: Mike http://sovereignspeculator.com/2010/03/04/how-a-lone-value-investor-thought-up-the-subprime-swaps-market/#comment-8669 Mike Thu, 04 Mar 2010 13:45:43 +0000 http://sovereignspeculator.com/?p=4104#comment-8669 Yeah, I was thinking the same thing. They can afford more lawyer than anyone. But it also sounded like they were not the counterparty for the bulk of it, just an intermediary. I wonder who was ultimately on the hook, other than AIG? Yeah, I was thinking the same thing. They can afford more lawyer than anyone.

But it also sounded like they were not the counterparty for the bulk of it, just an intermediary. I wonder who was ultimately on the hook, other than AIG?

]]> By: gunner451 http://sovereignspeculator.com/2010/03/04/how-a-lone-value-investor-thought-up-the-subprime-swaps-market/#comment-8668 gunner451 Thu, 04 Mar 2010 13:37:11 +0000 http://sovereignspeculator.com/?p=4104#comment-8668 The one thing that this tells me is that he would have been totally screwed if Goldman hadn't decided to get in on the trade itself. Otherwise they'd still be telling him some mark to fantasy BS and he would have lost everything. The story is a good example of why not to deal with these crooks as its head they win tails you lose all the time! The one thing that this tells me is that he would have been totally screwed if Goldman hadn’t decided to get in on the trade itself. Otherwise they’d still be telling him some mark to fantasy BS and he would have lost everything. The story is a good example of why not to deal with these crooks as its head they win tails you lose all the time!

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