KING OF BAIN....Oh My Gawd!

Quote from Lucrum:

And even funnier he claims to be a master debater.

Or was it masturbater?
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Sexual overtones, again....the mind of a manchild, but that is well documented so I won't beat a dead horse.
 
Quote from Maverick74:

Well, it's pretty hard to blow out without leverage. And exit well? Dude, the FED had to arrange for a group of hedge funds to buy out the debt. They never got out!!!!! Someone bought their book. There was no "not exiting well". LOL.

LTCM's marquee trade was the on the run/off the run basis trade. It meant they were long stuff nobody wanted (off the run treasuries and emerging market debt) and short on the run treasuries (which everyone did want). They had both sides going against them. Buying their treasury short back was not a problem other then the massive hit they took. But the only way to sell their exotic debt was to offload it at pennies on the dollar to various hedge funds.
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I am aware, but the topic was about leverage and whether LTCM was over, which they clearly were.
 
Hey Mav and RCG... can you take your debate into a chat room? Not to be rude, but you've just destroyed what was a pretty decent debate.
 
Quote from Maverick74:

Well, it's pretty hard to blow out without leverage. And exit well? Dude, the FED had to arrange for a group of hedge funds to buy out the debt. They never got out!!!!! Someone bought their book. There was no "not exiting well". LOL...
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I read the book as well as followed it in the press. But thanks for your literal interpretation.
Quote from Maverick74:

...LTCM's marquee trade was the on the run/off the run basis trade. It meant they were long stuff nobody wanted (off the run treasuries and emerging market debt) and short on the run treasuries (which everyone did want). They had both sides going against them. Buying their treasury short back was not a problem other then the massive hit they took. But the only way to sell their exotic debt was to offload it at pennies on the dollar to various hedge funds.
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They were overleveraged and their counterparties smelled blood. Had it not been for the excess leverage, there would not have been the smell of blood. The problem was that the strategy was not that profitable unless it had prohibitive leverage to make it so. And then the prohibitive leverage became just that - prohibitive.
 
Quote from Brass:

I read the book as well as followed it in the press. But thanks for your literal interpretation.

They were overleveraged and their counterparties smelled blood. Had it not been for the excess leverage, there would not have been the smell of blood. The problem was that the strategy was not that profitable unless it had prohobitive leverage to make it so. And then the prohibitive leverage became just that - prohibitive.
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Ding ding ding! Winner winner chicken dinner!
 
Quote from Epic:

Hey Mav and RCG... can you take your debate into a chat room? Not to be rude, but you've just destroyed what was a pretty decent debate.
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My bad, I forgot that RCG was the OP... but still
 
Quote from Epic:

Hey Mav and RCG... can you take your debate into a chat room? Not to be rude, but you've just destroyed what was a pretty decent debate.
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Okay, okay, back to Mittens. Bain is gonna kill him. One GOP strategist says it is cancer that will just keep coming back.
 
Quote from Epic:

My bad, I forgot that RCG was the OP... but still
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I'm done here. I like intelligent debate and it's so frustrating that I can't seem to have an intelligent debate with RCG. I swear to God the guy acts normal upstairs in the trading forums. Down here, not so much. I'll stop.
 
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