At Goldman he rose to the level of Managing Director and co-invented the tool for pricing options on Treasury bondswith Goldman colleagues Bill Toy and the late Fischer Black, of Black-Scholes formula fame.
Gordon is advising his clients to push income from 2013 into 2012, for example by closing out winning options positions and by cashing in bondswith accrued interest.
But if a person starts with just considering long stocks, bonds, commodities and real estate as being the only portfolio options, then true diversification cannot be achieved.
Charlie Ledley and Jamie Mai, two investors with a penchant for finding mispriced options, reckoned that credit-default swaps on mortgage-backed bonds were just too cheap a trade to pass up.