market Folly: Kyle Bass video very worthwhile

Kyle Bass Betting Against Japanese Government Bonds (JGBs) ~ market folly

In particular, he's focused on Japanese Government Bonds (JGBs). Of
them, Bass notes, "At a time at which the bond I think is the most risky
asset (or one of them) in the world, the pricing of that asset using
the Black-Scholes model is the best it's ever been. So you have this
huge convex moment that you can put enormous positions on in Japanese
interest rates very cheaply."

Read more: http://www.marketfolly.com/2010/08/kyle-bass-betting-against-japanese.html#ixzz1bHQwfeKT

Video is at the link above.