Kyle Bass

Kyle Bass studied economics at Texas Christian University and worked at Bear Stearns before founding Hayman Capital Management in Dallas in 2005. He gained worldwide attention in 2007-2008 when his fund profited massively from shorting subprime mortgage securities. Bass had identified the structural fragility of the US subprime mortgage market early — the poor underwriting standards, the use of complex instruments like CDO-squared that obscured risk, and the asymmetric payoff profile of buying cheap credit default swaps on mortgage bonds. His fund reportedly generated returns of approximately 600% during the crisis. Bass has since made several high-profile macro calls. He became one of the most persistent bears on Japanese government bonds — arguing that Japan's debt-to-GDP ratio was unsustainable and would eventually lead to a JGB crisis — a thesis that has remained unresolved despite more than a decade of waiting. He has also argued for years that China's banking system carries hidden non-performing loan problems that will eventually require a major devaluation of the renminbi. Bass is known for his willingness to make specific, controversial macro predictions publicly and to maintain positions for extended periods. He is also noted for IPR (Intellectual Property Rights) challenge strategies, filing patent challenges to profit from pharmaceutical stock declines — a practice that attracted regulatory scrutiny.