Can You Name a Profitable Trade Involving a Dead On Arrival Security or Credit?

[BargainValueHunter]

Aside from the subprime CDS trades highlighted in "Greatest Trade Ever" and "The Big Short" can you name or detail a similar "pulling victory from the jaws of defeat" type trades that seemed to defy conventional wisdom?

 

I'm thinking if anyone can make money with TEPCO it would make the cut of an all-time contrarian victory!  ;)

[MrB]

This is from memory;

OTPP bought CMOs back in 2007/2008, stripped out the AAA tranches and sold it off, thereby covering their cost of the original trade and kept the remaining tranches.  

This was right at the time when the market started to value the AAAs more and the lower tranches less.