define: "convex product space"  "kyle bass"

"convex opportunity" Japan "kyle bass"
"Bass focuses on what is the most "convex" product to imminent hyperinflation. "







http://en.wikipedia.org/wiki/Bond_convexity
http://en.wikipedia.org/wiki/Convexity_(finance)


http://seekingalpha.com/article/223802-roll-risk-and-convexity-in-the-u-s-debt-market

"convexity to hyperinflation"  
   means it inflates FASTER than another, prior to the inflection point.



Most bubbles (manias) are like this, multiple drivers converge and feed on one another and 
then all invert at the same time the (panic). 
An asset class has a few years of positive returns, leading to a perceived lowering of risk 
allowing for greater leverage allowing more people to buy into the newly discovered "money machine" asset class. 
Read Kindelberger to really appreciate how common this is.


Convexity type risks come creeping up in the night stealthily on tip-toes and then whoosh. 
Risk of this nature is process based; most people only focus on the event. 
The convexity drivers are all there and tension is building in the system. 
Stop watching CNBC to hear about the particular straw that is going to break the camel's back. 
Just look at a very burdened and tired camel and move on.