Kyle Bass on Sovereign Debt, Japan, Other things

[Hornin Hong Kong]

A friend sent me this link, I was captivated. You may enjoy it even though it's very lonf
The Link

You should skip to the point where Kyle Bass starts speaking and don't miss the Q&A at the end

He's a Texan (TCU) and a self made Billionaire, predicted the sub prime mortgage crisis, European Sovereign debt crisis and now is saying Japan is F-ed.

He is on the BOD of UTIMCO as well.

 

[Uninformed]

What is the best way to make money off of Japan's problems? Or a better question is, as an individual investor, what is the best way to short the Yen?

 

[DFWAg]

The CME has futures contracts on JPY USD rate running out to 2014.

All sorts of ways to play that.

 

[DFWAg]

There are also currency options. You could buy a put at today's rate if you somehow think the Yen will drop through the floor.

 

[DFWAg]

Just watched the video. Good stuff. I took Anil Kashyap's Central Banking class at the UofC so it was nice to see him and others hooking up with a Texan.

 

[Uninformed]

In reply to:

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[DFWAg]

No one is going to predict a date, or if the collapse even happens. You can risk your premium however in the hopes of getting lucky.

 

[texas_ex2000]

HHK,

Great video. Be careful though...there are a lot of West Mallers who think making money through derivatives is a less than honorable way to earn a living.

 

[Hornin Hong Kong]

For retail investors the easiest way to implement his buy gold, sell yen idea is to get an interactive brokers account and short yen futures, buy gold futures - requires little upfront cash and you just need to remember to roll your contracts.

Simple.

Even easire you can buy/sell profunds ETFs which are mutual funds that mimic (imperfectly sometimes) an underlying asset or instrument.

Currency and gold futures are very liquid and efficient and easy to use so I would do the first.

In the video he is really saying buy Japan CDS but you can't do that easily if you are a retail investor.

 

[DFWAg]

Most of the ETFs are beyond worthless. They use 1 Day rolling futures strategies, so the end holder eats the mounting premium costs and all the other greek issues. I tried some of the Direxion Interest Rate 3x ETFs and learned the hard way about how they fail to mimic their underlying strategy over time.