Bill Ackman Shorts Over $20BN In Credit To Hedge Next Crash

[Banjo]

https://www.zerohedge.com/markets/b...the+survival+rate+for+everyone+drops+to+zero)

 

[zdreg]

If he sells the credit hedge what is he saying about the direction of interest rates?
Actually according to the article he is buying the credit card hedge say if this is correct.

 

[Scataphagos]

Ackman is anticipating rates to rise. Equity markets won't like that much.

 

[zdreg]

He is expecting a negative credit event which will force rates higher?

 

[bone]

If he sells the credit hedge what is he saying about the direction of interest rates?

Oh, I'm sure that he is well aware of how the Ten Year Note and 30 Year Bond have really come off steadily since the first of August.

 

[Damanuelman]

He's playing this really smart. It's a small premium compared to the reward. So small risk big reward if he's right. Well if he's wrong he just paid an insurance premium and protected his portfolio. Good luck Bill Ackman, Herbalife will one day be declared a ponzi scheme. It doesn't matter if you make money you show dominance by being right.

Signed-Hugs and Kisses
A Bill Ackman fanboy.

Ps. This is satire if you couldn't tell.

 

[newwurldmn]

Oh, I'm sure that he is well aware of how the Ten Year Note and 30 Year Bond have really come off steadily since the first of August.

he’s buying CDS. Interest rates have no bearing on the position.

For nomenclature: buying CDS = paying protection = being short the corporate bond with an interest rate hedge.

 

[unconventional wisdom]

i think it's possible to make a similar trade with TABS. can anyone confirm this?

 

[Cuddles]

coup hedge?

 

[RedDuke]

Rates not going up any time soon. May be a decade.