Kyle Bass’s Disastrous Hong Kong Dollar Short Got Bannon-Linked Cash

The SEC accused a company of misusing funds intended for a media company opposing China, with $100 million ending up in Kyle Bass's hedge fund. Bass's firm, Hayman Capital, made a leveraged bet against the Hong Kong dollar, expecting the currency's peg to the US dollar to collapse. This bet, based on potential US policy changes under the Trump administration, failed as the Biden administration maintained the status quo, resulting in significant losses for the fund.

What was the primary accusation made by the SEC against the company in 2020?

• Raising funds under false pretenses and diverting them to a hedge fund

• Investing in real estate instead of media

• Using funds to support political campaigns

• Raising funds for a media company and using them for personal expenses

What was the main financial strategy employed by Kyle Bass's Hayman Capital?

• Investing in Chinese technology stocks

• Shorting the Hong Kong dollar

• Investing in European real estate

• Buying US government bonds

Since when had Kyle Bass been intermittently shorting the Hong Kong dollar?

• 2015

• 2016

• 2018

• 2017

What was a significant factor that led to the failure of the bet against the Hong Kong dollar?

• A sudden economic boom in Hong Kong

• A change in US political leadership and policy

• An unexpected rise in the US dollar

• A new trade agreement between the US and China

What was the anticipated action by the Trump administration that did not occur?

• Strengthening the US dollar

• Removing the peg between the Hong Kong dollar and the US dollar

• Increasing tariffs on European goods

• Investing in Asian markets