Posts in Category: Banking

Kyle Bass Cautions Against Investing in China

The founder and CEO of Hayman Capital Management, Kyle Bass, has pointed out that if only investors realized how vulnerable the Chinese banking system is, they would not be investing there. In a speech at Milken Institute Global Conference, Bass highlighted that common sense was enough to tell investors that they will have a loss cycle and by putting in mind how precarious the system is, an investor will not be allocating his or her money in China.

Kyle Bass, a hedge fund manager who got fame after betting against the 2008 US subprime mortgages is currently predicting losses for the Chinese banks and he is raising money to begin a fund that is dedicated for bets within the nation. Bass insisted that investors who are putting money in the Asian market should ask themselves if they are able to handle thirty to forty percent write-downs in the Chinese investments.

Kyle’s Career Choices

As time went on, Kyle Bass has not found it all smooth; his magic touch is long gone, and he is always making a bad call after a bad call. To make matters worse, he is making the calls in full view of market – he always wholeheartedly accepts TV invites where he makes his so called analysis that contribute to his unpopularity.

As if making bad calls is not enough, he has also made unsavory alliances. While everyone in the business believes that Cristina Fernandez Kirchner was a thorn in the Argentinian economy, Bass cannot refrain from sugarcoating the woman with praises. When Argentina defaulted its sovereign debt a second time in thirteen years, Bass defended the action and rationalized it making him sound out of touch with the reality. Bass has continuously championed her ludicrously irresponsible economic policies while ignoring the astonishing degree that she and her unscrupulous cronies have looted from their own people.

Bass has been accused of colluding with Erich Spangenberg – a renowned notorious patent troll. They are known to pick out specific pharmaceutical companies, short-sell the firm’s stock, and later challenge their patents through Coalition for Affordable Drugs. The results are: diminish of stock, Bass gains some few million dollars, and pharma firm’s prices escalates while their intension to fund research goes down. This causes harm to the thousands of individuals dependent on the pharma products.

How Investment Banking is Breathing Life Into More Startups

Startups have changed our world in the last 10 years, and they continue to do so each day. However, these startups cannot exist without funding. A bright and innovative young entrepeneur may have an idea that could solve a problem for millions of people, but if he or she does not have money to make it happen, then millions of people will miss a solution to their problems.

That is why investment banking is so important. It provides a very attractive alternative to VC firms to finance international trade. Investment banks are able to pool resources from various financial firms in traditional and alternative markets. This way, if a startup needs to go public, they can recieve the right funding. Without such funding, a potentially great idea could burn out. Investment banking finances ideas and products, helping deliver them to the world. That is why it is so important for entrepreneurs to understand their options.

Investment banker Martin Lustgarten serves as a prime example of the power of investment banks to provide financing to those who can change the world. The dual Austria and Venezuela national proudly uses his Purchase Order Finance company in Florida to extend capital loans to entrepreneurs all around the world.

These capital oans often go to people who would otherwise have difficulty raising funding for their revolutionary idea. Locations like Venezuela are less talked about and traditional VC firms often do not give those entrepreneurs a chance. Martin Lustgarten offers such financial opportunities to people all around the globe through investment banking.