Investors should buy CDS when highly levered entities hit 17 basis points
Andrew Tsai · Andrew Tsai – Catching a Theme on the Chalkstream (EP.73) · Oct 22, 2018 · at 47:35
Andrew Tsai, CIO of Chalkstream Capital Group, reflects on Lehman Brothers' pre-crisis CDS pricing to illustrate why cheap tail hedges on leveraged firms offer asymmetric payoffs.
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“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.”
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