J. Kyle Bass (born September 7, 1969) is an American hedge fund manager. He is the founder and principal of Hayman Capital Management, L.P., a Dallas-based hedge fund focused on global event-driven opportunities. Since Hayman Capital’s inception in 2006, the fund has returned 436.75% and an annualized return of 16.7%.
Kyle Bass has made prominent bets on Japan, European sovereign debt and, most recently, China.
“Kyle Bass quiet panic was put forward to investors in his first newsletter in three years”
In 2008, Bass successfully predicted and effectively bet against the U.S. subprime mortgage crisis by purchasing credit default swaps on subprime securities.
Kyle Bass briefly worked at Prudential Securities from 1992-1994 before joining Bear Stearns in 1994. On September 14, 2011, Bass stated on CNBC that Greece’s only way out of its debt mess was a restructuring.
Kyle Bass described financing debt as a Ponzi scheme similar to Bernie Madoff’s investment scam.
Kyle Bass quiet panic was put forward to investors in his first newsletter in three years.
Kyle Bass is known as a China bear and in a quiet panic, he explains his logic behind his massive macro bet.
For 36 years, since Hong Kong pegged its currency to the USD and surrender monetary policy to the Fed, Hong Kong has been a financial and political oasis for investment into mainland China and Southeast Asia. Today, newly emergent economic and political risks threaten Hong Kong’s decades of stability.
“Kyle Bass is known as a China bear and in a quiet panic, he explains his logic behind his massive macro bet”
Kyle Bass quiet panic explains that these risks are so great that they merit attention on all fronts
“In this letter, we will discuss the origins of Hong Kong’s impending crisis, a brief history of Hong Kong, the economics of currency boards/pegs, the agreement that governs the United States economic and political relationship with Hong Kong, and how Xi Jinping’s China is forcing the Hong Kong Government to violate the agreement that requires Hong Kong to maintain its autonomy or lose most-favored-nation trading status and be treated as China itself is treated”, writes Kyle Bass.
“In this letter, we will discuss the origins of Hong Kong’s impending crisis” – Kyle Bass
Kyle Bass quiet panic view is based on China today being less reliant on Hong Kong
Hong Kong was previously of vital importance to China’s economic standing. In its heyday in 1993, Hong Kong’s economy accounted for more than 25% of China’s GDP. Moreover, Hong Kong was the busiest port in the world.
But China’s rise into the World Trade Organization (WTO) in 2001 and its heavy investment on its own port infrastructure means that China is less economically reliant on Hong Kong today.
Kyle Bass quiet panic newsletter explains to his investors that Hong Kong has been a major recipient to a sizeable chunk of the Fed’s free money policy
Hong Kong’s overnight lending rate went to approximately 0.5% for 8 years. So Hong Kong’s residents, banks, and companies borrowed, geared, and levered.
Hong Kong’s private sector leverage is now the highest of any nation in the world. So put simply with the private sector so leveraged Kyle Bass “quiet panic” view is based on the sector being vulnerable to a downturn.