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Corporate debt bets
Other parts of credit markets also remain vulnerable, Paulson said.
financial-services institutions and has been betting against these companies through credit default swaps. (CDS are a bit like insurance against a company defaulting. The buyer of protection, such as Paulson, is betting that companies' ability to repay their debts deteriorates).
"We believe the opportunity is similar, though not as great, as when we started buying protection on subprime well ahead of actual recognition of the problem," Paulson wrote. "We do not feel that the credit correction is over."
Scion's Burry also has a derivative bet against corporate debt that's worth roughly $2.2 billion, he noted in his letter to investors. That could still generate big gains if there's more turmoil in credit markets, he said.
Alistair Barr is a reporter for MarketWatch in San Francisco.
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SPECIAL REPORT
Two hedge funds move on after big subprime bets
Paulson makes billions trading against risky mortgages; Scion up 80%
By Alistair Barr, MarketWatch
Last Update: 12:09 AM ET Nov 15, 2007
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SAN FRANCISCO (MarketWatch) -- Two hedge fund firms that racked up huge gains betting on the subprime mortgage meltdown have begun winding down those trades and looking elsewhere. They're now betting against corporate debt using derivatives.
Paulson & Co. has generated returns of up to 435% in the first nine months of 2007 thanks to short positions on securities backed by subprime home loans, according to an update the $24 billion hedge fund firm sent to investors recently. Short sales rise in value when the securities in question fall.
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Test # 2
The RCMP's version of events a month ago and the actual video footage does not match. This does not surprise me... only this time there is video evidence of their actions, otherwise we would be fooled again. And the story swept under the rug, with lots of smoke and mirrors.
A couple of weeks ago, a police cruiser killed two boys at an intersection, the excuse used there was she was responding to a suicide attempt!!?? Two more innocent people dead.
Well first of all, it helps everyone by knowing that our country upholds the legal rights of all its citizens and that justice be served. They are police officers, but they are supposed to be trained on how to deal with situations. They aren't given the freedom to abuse and attack whoever they please. This situation is a prime example of how the police can abouse their power. This was a situation where such harmful force (50,000 volts) was not necessary and any person with half a barin would realize this. They far exceed the use of force reuired (though none was needed at all). Now the man is dead because of their stupidity and ignorance. The police have to obey the law just like every other citizen.
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This is like a blog with comments allowed and solicited. The comments need to be moderated before being published. Someone needs to moderate them. An email alert happens whenever a comment is entered. There ia a lot of comment spam. It needs to have a spam filter.