A New Book About the Bond King by Mary Child

In the eighties, pimco worked out that there was not really enough of this paper on the street. There was effectively an arbitrarge available, whereby a you could force to be delivered something much more valuable than your future suggested it would be. I think they ended at buying son 80 or 90 % of the open interest of this thing. And then, of course, it came to the point of asking for physical delivery. So these pimco guys were having to to go round to to banks with brief cases and pick up actual pieces of paper. They made about 80 million dollars from it, which nowadays is just a rounding errorn pimco's massive p an l bak.

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