Jump to content

Can You Name a Profitable Trade Involving a Dead On Arrival Security or Credit?

Recommended Posts

Aside from the subprime CDS trades highlighted in "Greatest Trade Ever" and "The Big Short" can you name or detail a similar "pulling victory from the jaws of defeat" type trades that seemed to defy conventional wisdom?


I'm thinking if anyone can make money with TEPCO it would make the cut of an all-time contrarian victory!  ;)

Link to comment
Share on other sites

This is from memory;

OTPP bought CMOs back in 2007/2008, stripped out the AAA tranches and sold it off, thereby covering their cost of the original trade and kept the remaining tranches.  

This was right at the time when the market started to value the AAAs more and the lower tranches less.


Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...