The Ex-Goldman Trader Who Correctly Shorted Subprime Mortgages During The Financial Crisis Has Made A New Bet

Monday, December 15, 2014
By Paul Martin

MYLES UDLAND
BusinessInsider.com
DEC. 15, 2014

When Josh Birnbaum was at Goldman Sachs in 2007, he made a huge bet against subprime mortgages.

Now he’s betting against something else: high-yield bonds.

From The Wall Street Journal:

Joshua Birnbaum, the ex-Goldman Sachs Group Inc. trader who made bets against subprime mortgages during the financial crisis, now has more than $2 billion in wagers against high-yield bonds at his Tilden Park Capital Management LP hedge-fund firm, according to investor documents.

On Monday, The Journal published a big report on the worries facing investors in the junk bond space amid the sharp decline in the price of oil. Bonds tied to the energy sector make up about 15% of the high-yield space.

A few weeks ago, investment adviser Josh Brown wrote: “The question now is whether or not the slide in crude can do enough damage in the high yield market to set off a chain reaction of de-risking, default, and outflows.”

The Rest…HERE

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