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David Snyderman on Specialty Finance and Data in Investing

Masters in Business

CHAPTER

Capitalizing on Market Fragmentation: A Unique CDO Investment Strategy

The chapter delves into a unique investment strategy involving buying unrated portions and shorting rated portions in the mortgage market. It explores how the group identified opportunities in the fragmented market and capitalized on them by focusing on white spaces and exploiting valuation differences. The risks, rewards, and importance of being delta neutral in options hedging are also discussed.

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