Case | HBS Case Collection | March 2012 (Revised October 2012)

Hayman Capital Management

by Robin Greenwood, Julie Messina and Jared Dourdeville

Abstract

In late December 2011, Hayman Capital founder and portfolio manager Kyle Bass was reviewing Japanese government budget projections for 2012. The projections appeared contrary to Hayman Capital's views on Japan, where the fund had built a bearish position. Japan had the world's highest debt burden, whether expressed as a percentage of GDP or government revenue. Guided by recent global events, Bass forecast that Japan would soon experience increases in interest rates, a devaluation of the currency, and eventually, a restructuring of the country's debt.

Keywords: investment management; macroeconomics; speculative bubbles; credit; Japan; government policy; behavioral finance; Financial Management; Price Bubble; Credit; Financial Strategy; Behavioral Finance; Government and Politics; Macroeconomics; Financial Services Industry; Japan;

Citation:

Greenwood, Robin, Julie Messina, and Jared Dourdeville. "Hayman Capital Management." Harvard Business School Case 212-091, March 2012. (Revised October 2012.)