To: Jeffrey E.Ijeevacationiagmail.comj
From: Vincenzo lozzo
Sent Sun 8/10/2014 12:33:51 PM
Subject Re: A note on shorting
Well but:
I) if you short just a single company that raise a gigantic red flag on you the moment the company
is hacked and even then the company only represents x% of a tranche - so it's a lot of work for a
very tiny risk premium
2) if you short the entire tranchc and more than Y companies arc breached that's likely very
suspicious as well
Besides if Fm willing to take the other side of the bet on the derivative, why not buy the bond in
the first place?
In any case, I've read a lot of stuff yesterday. I think that today if we manage to, I should walk
you trough how bitcoin works, that might be useful for your talk as well, and also ask you a
couple of questions - since a lot of currencies seems very fragile and I don't get why people aren't
making a killing on them (the krone being one example)
Sent from my Iphone
On 09/ago/2014, at 21:22, "Jeffrey E." <jeevacationagmail.com> wrote:
no one knows the other side it just looks like a sell and they are buyers?
On Sat, Aug 9, 2014 at 8:00 PM, Vincenzo Iozzo ote:
Sony for the email flood..
While studying I realized I forgot a big counterargument to your derivative on the cyber
stuff: even if you want to short the bond trough a derivative, who's going to take
the other side of the bet? Everyone is/should be aware of the moral hazard there I
think
Not saying that invalidates your thesis on the fact that this can't work because it's hard for
investors to understand - just saying that I don't think shorting it is a risk
Anyway, PII go back to my studies :)
Sent from my Iphone
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