The Big Short and Structured Credit at LibreMax

Greg Lippmann

Hedge Fund

Private Equity


Episode: 270
September 12, 2022

Episode Description:

Greg Lippmann is the co-founder and Chief Investment Officer of LibreMax, an $8 billion asset management firm specializing in structured products. Greg co-founded LibreMax in 2010 after a long tenure at Deutsche Bank focused on the space. He was one of the originators and the literal epicenter of the subprime mortgage short position during the financial crisis. Michael Lewis featured Greg in The Big Short and Ryan Gosling played him in the movie based on the book.

Our conversation covers Greg’s background, story of the subprime short, structured product market, and launching LibreMax. We discuss his investment strategy, research process, portfolio construction, trading, competitive landscape, and market outlook. We close with Greg’s experience being portrayed by a Hollywood star on the big screen.

Show Notes
4:17 Greg’s background
10:14 Subprime mortgage short
17:22 From the trade desk to the silver screen
20:20 Transition to structured credit markets
22:45 Forming LibreMax Capital
25:09 Initial investment strategy
28:25 Portfolio management process
31:45 Underwriting process for illiquid collateral
34:12 Portfolio construction
38:15 Team structure
41:27 Current market risks
48:17 Experience of movie portrayal
49:41 Closing questions

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