credit default swaps

“Japanese equities down 40%, China hard landing, the world ends, like we're levered about four times short, notional short on CDS.”

“We have CDS positions in Japan. That's a whole nother bet where we think there's these massively levered companies that are trading at ridiculously tight CDS levels that we think are in industries that are in secular decline.”

“Lehman traded at 17 basis points. And just as an overarching theme, anytime a highly levered thing trades anywhere in that zip code, I think he just, I think he puts them on.”

“I'm not that bothered by this for a couple of reasons. One, it's like Many of these stories result in companies getting cheap financing and it's like, well, you have this derivatives market. Company didn't ask for it. It was just like grew up independently of …”

“It's a mistake to think that there is this pure bet on the credit quality of a company. The company is going to default or not default, not just based on its cash flows, but based on like whether it can get refinancing or whether its lenders will extend its lo…”