Monday, February 4, 2008

In honor of this weeks American Securitization Forum - we present John Devaney - thanks Wall Street Folly

keep one thing in mind, this guy was buying securitized pools of airplane leases post 9/11 and made an absolute fortune, he understands risk and is willing to bet big. I wouldn't count him out just yet.


John Devaney, skipper of United Capital Markets Holdings Inc., and former skipper of "Positive Carry", one of the two yachts he was forced to sell last year after he was nearly sunk by bad sub-prime bets, thinks it's time to test the waters again.

The chief executive officer of United Capital Markets Holdings Inc., who lost more than 35 percent for at least one client last year and prevented investors from withdrawing their cash, says bonds derived from subprime mortgages are a bargain after falling as low as 10 cents on the dollar. TCW Group Inc. and Pacific Investment Management Co. are also betting that prices will recover.

``Just because I lost money doesn't mean I will quit, no way,'' Devaney, who sold his boat ``Positive Carry'' and Gulfstream IV, said in a telephone interview from Key Biscayne, Florida. ``Prices have collapsed and this is the best opportunity I've seen in my career.''

Losses, mainly from mortgage bonds and CDOs, forced Devaney to sell his 142-foot (43 meter) yacht, the jet and real estate. ``We took a bad loss,'' Devaney said. ``Selling the boats and planes helped reduce overhead and raised money to put back into the business.''

Devaney's call to buy coincides with the American Securitization Forum, a big annual conference being held in Las Vegas beginning tomorrow at the Venetian. 5,700 attendees are scheduled to be there, including speakers from Countrywide Financial and Bear Stearns that have had their own well publicized problems with sub-prime.

Devaney, 38, paid for comedians Jay Leno and David Spade to perform in previous years. This time, he's sponsoring dinner and a show by the Blue Man Group, a theatrical troupe that sprays paint on the audience and vomits fake food.

1 comment:

Morty said...

will I sound like a broken record if i say: hold a gotdamn auction. lets end this thing.