Bond Investing at a time like this look very unappealing. Its great to hear an interview of a star bond fund manager selling her Koyok.
The best part of her interview is that emerging markets are not going to do well, and that her one best idea, is actually a stock idea!
Applied Materials! The primary customer of UMS (Analysis here)!
- 02:15: Rates slated to rise, bad climate to be in bonds?
- 03:05: Avoiding interest rate risk (non-US bonds, convertible bonds)
- 04:35: Why traditional bond strategies (government bonds, corporate bonds) are dangerous now
- 05:20: Most challenging times in 3 decades, Huge Verizon Bonds priced higher to compensate you but to her it will still decline in price
- 07:40: Unconstrained bond fund (can invest 20% in equities)
- 10:00: Her strategy for the US market (cyclical, high yield from improving fundamentals however some coupon too low, falling angels)
- 11:10: Dell Merger and Acquisitions – Bond decline in price but perhaps may have value
- 13:20: When Bernanke announced does she need to change her strategy
- 14:20: Un-conventional bonds – convertible bonds explained (diversify into certain market segment that doesn’t have high yield), Intel
- 17:20: Emerging Market, yields low not really good news. Fundamentals getting bad. They need to adjust to lower growth. Investors have to be more cautious
- 19:20: Emerging Market Opportunity. Mexico – Good (Reform, Levered to a growing US economy), India – Bad (Bad Policies)
- 21:00: One investment – Applied Materials (Fast obsolescence, growing dividends)
- 23:00: Safe income strategy – Bond Ladder with Treasuries