“We were earning a spread over SOFR of 14.6%... the bank and the ETF settle up every day... we are providing insurance against a very large single day drawdown to a bank”
Janus Henderson · Animal Spirits Podcast · Talk Your Book: The Next Generation of Income Strategies
Play from 30:58
30:58
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What was described
issued a stability note on SK Hynix that insures a bank against a single-day drawdown and earns a spread over SOFR
14.6% spread over SOFR; barrier 45%; SK Hynix fell 45% in one day
Said nearby on the same subject
“We took up our position in SK Hynix to be about a four, a bit over 4% ... stock's up 20 fold ... we've sold about 90% of our position, but that still leaves us with almost 7% position in the fund”
CR
Cameron Robertson
Equity Mates Investing Podcast ·
How they work4% position, 90% sold, 7% remaining, 20-fold stock increaseShare this moment
“Senior bond spreads move from the low 60s to the circa 70 area; major bank T2 spreads drift from high 115-120 to low 130”
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Said on Complexity Premia
Why it workedsenior spreads low 60s → ~70 bps; T2 spreads high 115-120 → low 130 bp…Share this moment
“Each different plant earns you a point… 30 different plants a week… the super six… quantity, variety, and spread.”