Kyle Bass Buys Up J.C. Penney Loans, Bullish On Recovery

More hedge fund drama is on the way as Kyle Bass steps into the J.C. Penney Company, Inc. (NYSE:JCP) foray. According to Bloomberg’s sources, Kyle Bass is betting on a comeback of the very troubled retailer with a long position in its debt. Pursuant to Bass’ style of investment, his fund is hedging its longs in the company’s secured loans by selling CDS to other investors of J.C. Penney debt, in case the company defaults. Kyle Bass sees the event of J.C. Penney Company, Inc. (NYSE:JCP)’s corporate demise as an unlikely event, said the anonymous source. Yield on J.C. Penney’s bonds maturing in 2020 is…