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Ackman: Pershing Square bought interest rate options striking above 93 bps

Bill Ackman · 20VC: Doug Leone, Bill Ackman, Bill Gurley and Orlando Bravo on "Does Price Matter"; When to Pay Up vs When to Stay Disciplined, The Biggest Lessons on Price Discipline from 8 of the World's Best Investors · Feb 9, 2024 · at 12:03

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Bill Ackman, Founder and CEO of Pershing Square Capital Management, details how his fund structured an asymmetric macro interest rate derivative position when two-year yields were at 12 basis points.

0:00 / 0:12exact quote · 12.5s

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“We bought, in effect, the way to think about it is we bought a call option. That paid off when two-year interest rates went above 93 basis points, and we had about an eighteen-month term. And at the time we bought that instrument, two-year rates were at 12 basis points.”

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The claim, plainly

Pershing Square bought an 18-month interest rate derivative structured like a call option that paid off when two-year interest rates surpassed 93 basis points, purchased when two-year rates were at 12 basis points.

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Mentioned

Pershing Square Capital Management two-year interest rates

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Ackman: Pershing Square bought interest rate options striking above 93 bps

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