IMO, a fair amount of the profit in the highest flying risk arbitrage schemes is based on leveraging with the bankruptcy put.
Yes! Selling insurance, but with no capital to back it up.
If these people were smart they would take money off the table as they go. But the trouble is that they starting drinking their own kool-aid. Eg Long Term Capital Management.
Yes! Selling insurance, but with no capital to back it up.
If these people were smart they would take money off the table as they go. But the trouble is that they starting drinking their own kool-aid. Eg Long Term Capital Management.