Short the subprime's?

[Tulpen]

More banks come out with statements that they are short subprime CDO's or that most have been sold. Well they are obviously still there, the question is who bought them?

If they used derivatives, to become net short, then it's a zero sum game, hence someone is in the gutters with the opposite side right now.

Who in his right mind would have bought these? Or is it some kind of accounting trick?

[DemonD]

Re: Short the subprime's?

probably futures markets derivatives. apparently goldman did well with this before but i doubt it will anymore since the credit markets have frozen. I can't imagine anyone being able to sell it short nowadays, since the futures markets have also probably been affected.