Homepage / Asia / Where big money investors are putting their fixed income dollars
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Asia

Where big money investors are putting their fixed income dollars

With bond yields spending years barely hovering above zero in most developed markets, big money investors are having to get creative to find returns.

For many, that means taking their money to riskier assets. Here’s what some of the biggest names in fixed-income investing had to say this week at Milken Institute events in Singapore:

For one, Joshua Friedman, co-CEO of Canyon Partners, said he’s looking for investments that don’t fit into what a standard exchange-traded fund or high-yield fund can hold and he’s exploring ideas that are complex or distressed.

“In a low-yield and relatively complacent environment, don’t be tempted by investments in things that are relatively interesting but low-yield and complacent,” Friedman said on Thursday. “Try to invest in areas of disruption, of change, of uncertainty and try to find things where people are essentially by mandate forced to sell.”

As an example, Friedman cited Canyon Partners — which says it has more than $20 billion under management — investments in bonds from Caesars Entertainment, which exited two-years of bankruptcy proceedings early this year.

As the company, among the U.S.’s biggest casino operators, struggled under a complex structure and heavy debt load, some of its bonds were trading at as little as 17 cents on the dollar, Friedman noted.

He added that, despite the recovery in the company’s bonds, he still thinks there’s more profit to be made. Friedman pointed to consumers’ recent preference for experiences over products, which will make money for Las Vegas.

Friedman wasn’t the only investor who said they were pursuing risky — but cheap — assets.

Steven Tananbaum, chief investment officer at GoldenTree Asset Management, said at the conference that he’s looking at bonds from Argentina and Puerto Rico. Both of those places have defaulted on bonds in recent years.

But within those regions, he said, investors need to be discerning about which bonds they target.

“If you’re just looking at Argentina debt, it’s good value. But if you look at different areas of Argentina with the same risk, which would be the provinces, there’s much better value,” he said.

With Puerto Rico bonds, he said he was looking at those related to the Puerto Rico Sales Tax Financing Corporation (also known as Cofina), with some having their payments guaranteed by an insurer.

Tananbaum also noted that he was looking at bonds that have been rated as particularly risky.

“Looking at history, this is a great time to be investing in triple-C,” he said, referring to those considered extremely speculative and potentially even close to default.

GoldenTree manages over $25 billion, according to its website.

Thomas Finke, chairman and CEO of Barings, said his firm was looking at getting a stream of income from buying into assets other than bonds.

“There’s a lot of opportunity as the economy is changing to invest in assets that generate cash flow. Think of things like trailers that go on the back of railroad cars and trucks. Think about things like media content,” he said at the conference.

Similar opportunities would continue to arise, he said, as planned infrastructure projects proceed.

Barings is a $288 billion asset management firm as of the end of June, according to its website.

Other investors at the conference were notable for their long time horizons.

Liew Tzu Mi, chief investment officer for fixed income at GIC, Singapore’s wealth fund, said that just settling for high valuations and low returns on bonds wasn’t sufficient.

Instead of waiting for companies to bring bond sales to the market, GIC seeks them out, she said on Wednesday.

“We go to companies that we like, we understand the balance sheet, we know that they can withstand a recession and then we go back and say, ‘Hey, how about coming up with a financing solution,'” she said.

In addition, she said GIC was very interested in China’s bond market, noting it was already the world’s third largest despite its extremely low foreign ownership.

“I think we’re still at the infancy, where investors are trying to get comfort around investing in China,” she said. “But for us it’s a huge opportunity because where else can you get, we think, a quality asset in terms of looking at reserves, in terms of the status of the currency at some point in the future.”

She noted that Chinese bonds still had higher yields than many other bond markets. China’s 10-year government bond was yielding around 3.6 percent, while the U.S. 10-year Treasury yield was around 2.2 percent.

“We think at some point these are going to be mainstream, this is going to be in the index, this is going to be in many people’s portfolios,” she said.

GIC, which manages Singapore’s reserves, does not reveal its portfolio size, but on its website it said the amount was “well over $100 billion.”

Source: cnbc china
Where big money investors are putting their fixed income dollars

Comments are closed.