Andrew Feldstein, head of BlueMountain Capital Management, was on Bloomberg to talk about the role of credit derivatives in financial markets. For those who are not familiar with Andrew, he worked at JPM (he was head of structured products) before founding BlueMountain. Since founding BlueMountain has been incredibly successful - he was among the highest paid hedge fund managers in both 2010 and 2011. In 2010 they returned around 9% from trading CDS and CMBS. In 2011 the credit fund (as of October) was up 3.3% and the long/short group was up around 9%.
He currently sees opportunities, with borrowers who previously relied on the securitization market. He thinks there is a real opportunity to provide capital to these borrowers that no longer have access to capital.