A Hedge Fund Bets on Yuan’s Decline

 

One fund, Hayman Capital Management, is making some large bets. And it is run by Kyle Bass, a recognized investment manager who is credited with correctly predicting the financial crisis in 2008. His hedge fund hasn’t been performing that well recently, and now Bass bets on a major decline in China.

 

Hayman Capital Management has sold part of its holdings in various equities, bonds, and commodities. This money is now going into leveraged bets against Chinese currency as well as Hong Kong dollar. In fact, 85% of fund’s portfolio is invested into these bets. It’s a quite risky play, but if these bets pay off, the gains can be huge.

 

Bass believes that Chinese yuan can fall as much as 40% over the next few years. According to him, China is currently facing a huge macroeconomic imbalance. A multi-trillion corporate bond market in the Middle Kingdom is freezing, he claims.

 

So far this year, several issuers have defaulted on their debts, while multiple new debt issues have been suspended or canceled. However, he doesn’t think there will be a massive collapse like that of 2008 in the United States.

 

Bass believes that Chinese authorities will recapitalize their banks, expand Bank of China’s balance sheet just like the Fed did, and cut reserve requirements as well as drop deposit rates to zero. This should prevent Armageddon, but still is likely to lead to yuan’s depreciation.

 

Kyle Bass is a controversial figure. In the past, he made headlines with his comments and bets. One of these involved shorting stocks of drug companies and then suing them over patents.

A best friend in a bottle

Ladies, does your hair have that stripped or damaged appearance? Does your hair feel brittle and is constantly breaking on the ends? Is your natural hair hard to manage? Well, all these issues can easily be resolved with just 3 words: proper haircare products!

WEN is a natural haircare product developed by Chaz Dean. As a novice stylist, Chaz was enlisted by a former manager at a well-known Beverly Hills salon to develop a unique deep conditioning formula. With the success of that product, Chaz was later charged to develop a natural haircare product that did not strip your hair of its natural oils, but strengthened and beautified. Wen hair has been tested and shown to work on all hair types.

WEN hair products have paved the way in haircare by offering a no lather cleansing conditioner. This cleansing conditioner is unique because it replaces the typical process of haircare (shampoo, condition, deep condition, detangle, and finally leave-in conditioner); therefore, eliminating unnecessary time spent on your hair. This cleansing agent follows a simple 3 step process. First, using your fingers you simply message the cleansing conditioner into the hair. Second, you allow the conditioner to set in the hair for several minutes. Third, you simply rinse the hair thoroughly. That’s it, simple and quick. This formula has also been designed to work as a leave-in conditioner.

It is important to choose the best haircare products on QVC to manage your haircare needs. These are products that do not leave the hair with a heavy residue or give your hair a greasy appearance. A good conditioner will detangle your hair, help manage frizz, and offer other benefits such as UV protection. When used as instructed, the proper haircare product will save you time and be your best friend in a bottle.

Read more: https://en.wikipedia.org/wiki/Wen

Visit Guthy-Renker to know more about Wen.