Wall Street could guarantee a profit out of Powerball by issuing high-yield junk bonds and purchasing 292 million tickets.
If the venture won the jackpot outright, it would pay off the bonds and pocket around $300 million.
If it had to share the jackpot, and so made a loss, it would just default on the bonds.
You think I'm kidding? I just explained the math of pretty much every hedge fund - plus Donald Trump's bankrupt casino ventures in Atlantic City.
Love it!
From MarketWatch (h/t & thanks to @danewilliamsau)
