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-- -- the buzz word on -- this summer but our next guest disagrees he says there's actually three things that are really certain.
We see higher tax is lower -- come and limited growth.
That's great news minute -- joining it now seem dramatic it's -- investment officer preparedness asset management.
I guess that's -- least it's certain it's not good but -- certain.
Yeah I -- again were you know what we're listening to and to the excuses that we're we're being fed here in terms of well we're.
It's uncertainty the markets are uncertain Europe as a service that are we're saying -- -- to a point it's uncertain to a point it is certainly made -- not wanna deal with the reality I think that's certainly so is this regardless of who wins the election in November those -- things pretty -- -- -- think that's exactly right I think I think that the issue is that we've but we've become kind of -- -- country here in terms of waiting for the waiting for the government to fix our problems you know I've I've been talking to people love over the last week and the ask questions about Bernanke policies it's -- our problem is and interest rates are problem right now is.
Really an issue of courage and and I think -- concept of starting businesses.
Really I guess if you have a certain policy be tax issues vs vs interest rates interest rates are planning low enough.
So if it is so certain that regardless of what the certainty is it should be easy to trade this market and that people are finding it so difficult.
Yeah I think -- you know I think that that it was I guess it was Doug Kass who who well who had printed in Barron's few a few weeks ago.
Talking about the issues of of equities and their lack of correlation anything and I think we would agree and I'm in the credit markets -- my -- -- -- -- -- for twenty years.
The the notion of equities telling us anything right now I'm not sure -- I think it's an algorithm -- -- program and I'm not sure that that is anything more than that.
The old timers it let myself that there -- schooled in fundamental analysis basically found that out the window when I understand nothing these days.
Even a bond -- is a little bit more predictable -- -- that dare I say I mean.
Although you say stay -- from corporate bonds.
What what we -- what we were were referencing and by the way ya I noticed that you do have an accounting degrees -- -- southern yeah this is so I'm dark there that a Falcone -- but but anyway the I think that the that is the issue is that when when ice and went on about corporates and talk about high grade corporates couldn't.
What I don't understand I have never understood is a high yield investor.
Is why you would lay money out today at 3050 basis points more than treasuries with no covenants credit risk liquidity risk etc.
Why you know and yet it's a massive market it's huge commitments by institutions.
We don't understand that never have.
You're high yield -- 40% of corporate credit is high yields want that.
Yeah you know it's a combination of things I -- in business and 84 and I can't actually remember how many Tripoli credits we actually had.
But it was a lot and today -- -- we have five you know five.
Corporates in the US that are actually triple it.
So it's a combination of modern finance where we were taught to leverage everything up so we we don't care about credit ratings -- we care about return on equity.
And and then also just sort of a slow gradual decline but really it's more the -- finance than anything else -- ratings agencies I'm April how do you invest in high -- Well in today's market have we we see a lot of misinformation and I get to very very segregated marketplaces you have the -- first market is on the run.
Very large issuers issuance.
Very overvalued very expensive and this is the video did you hear the media and are we in a bond bubble.
Kind of -- kind of not because -- bond bubble can last twenty years there's a there's a demographic component to it.
But in in real high yield and we say real high yield what we're saying is.
Get rid of your concept of of ratings get rid of your concept of trust size and liquidity lots of things to do was never won a best markets -- -- -- Look at the company's Tim them out of -- I'm sorry that the weather's revenue -- things the from Santa Barbara you all the latest thinking and -- saying he's an alliance that.
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