Tags: Elliott | Paul Singer | Bonds | Safe-Haven

Elliott's Paul Singer: Long-Term Bonds Aren't a Safe-Haven

Wednesday, 08 May 2013 01:21 PM

 


Paul Singer, founder of Elliott Management, said Wednesday at the Sohn Investment Conference in New York that developed countries are facing "long-term insolvency" and that monetary stimulus is distorting the prices of long-term bonds.

"I'm not recommending short selling long-term bonds, ... but what I would say is those who own long-term bonds in the U.S., UK, Europe or Japan own assets which are trading at the wrong price," said Singer, whose hedge fund has $21 billion in assets under management.

Singer said the global financial system remains "opaque," and he blamed stimulus measures like the U.S. Federal Reserve's $85 billion in monthly bond purchases for skewing the global recovery and the pricing of long-term bonds.

"These prices are distorted," Singer said of the long-term bonds. "If you own them you should know about the distortion, and there is not a safe haven today in my view in today's markets.

"Everyone wants a safe haven. ... There is no such thing in today's markets and that's one of the sad elements of the distortion."

© 2015 Thomson/Reuters. All rights reserved.

1Like our page
2Share
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
© Newsmax Media, Inc.
All Rights Reserved