Kyle Bass Is Wrong on Hong Kong's Peg, Too
Those who don’t learn from the past are condemned to repeat it. Just ask Bill Ackman.
Betting against the peg hasn't worked, even at crisis time.
Photographer: STEPHEN SHAVER/AFP/Getty Images
Having failed to preside over a collapse in the yuan, hedge-fund manager Kyle Bass has a new target: the Hong Kong dollar peg. He’s wrong about that, too.
Bass is shorting the Hong Kong currency and is “very long dollars,” the founder of Hayman Capital Management told Bloomberg TV in an interview Tuesday. The Hong Kong Monetary Authority has spent 80% of its reserves over the past year defending the peg, he said in an investor letter on the city’s “impending crisis.” That prompted a riposte from the de facto central bank, which said his analysis was based on a misunderstanding.