Canonical · Fraud & Short Cases · Letter
Scion Capital Letters (Subprime Short)
Michael Burry · 2006
"Subprime mortgage-backed securities will collapse; buy CDS protection against the housing bubble."
Michael Burry, a value investor with aspergers, discovered in 2005 that the US housing market was built on a foundation of fraudulent subprime mortgages. He convinced Wall Street banks to create a new instrument—Credit Default Swaps on mortgage bonds—so he could short the housing market.
Read more about the topic
Up NextSuggested: Continues the theme of Fraud & Short Cases
Enron Short Thesis
"Enron's returns didn't cover its cost of capital and its accounting was opaque; the equity was worthless."
Jim Chanos / Kynikos · ResearchContinue→