Why Kyle Bass bet against Daniel Sadek

Hedge fund manager Kyle Bass wanted to bet against the US mortage market and CDOs.

- What I didn't understand was the synthetic marketplace, hedge fund manager Bass said.

- When someone explained to me that it was a synthetic CDO that takes the other side of my trade, it took me a month to understand what the hell was going on.

Bass hired private detectives, scanned news reports and talked to underwriters to find the riskiest mortage companies.

Then Bass came across Daniel Sadek and Quick Loan Funding.

Bass learned from the news that Saked was dating a soap opera actress, Nadia Bjorlin, and using profits from his mortgage company to fund a movie about car racing, in which she starred.

- When they started catapulting Porsche Carrera GTs and he says, `What the hell, what are a couple of cars being thrown around?' I'm thinking, `That's the guy you want to bet against, Bass reportedly said.

Here's the clip from that stupid movie:

Source for quotes and back story: Bloomberg