BHF - A Little Brighthouse At The End Of This Tunnel
Introduction
In my article six months ago on Brighthouse Financial (BHF), I pointed out that the company was generating huge losses, not the profits that bulls like David Einhorn of Greenlight Capital imagined. In a follow-up article, I laid out the case for why the losses generated by the company’s derivative positions were real, and not something that was merely the result of accounting conventions. In the first three quarters of 2018, the company’s derivative positions, including puts the company held on $50 billion of notional equity exposure, had generated losses of