Hedge funds such as Maglan Capital LP and MeehanCombs LP are helping fuel a rally in Puerto Rico debt, signaling that investors who have the most appetite for risk expect the worst may be over for the commonwealth’s bonds.
Clifton Robbins, founder and chief executive officer of investment firm Blue Harbour Group LP, said he is waiting for fear of a U.S. default to hurt financial markets because it will bring an opportunity to buy assets.
The Federal Reserve will at its next meeting reduce its unprecedented stimulus to as little as $60 billion each month, according to Bruce Richards, chief executive officer and co-founder of New York-based hedge-fund firm Marathon Asset Management LP.
Energy Future Holdings Corp.’s October and November interest payments on its $43.6 billion of total debt will prompt the former TXU Corp. to restructure, according to Marathon Asset Management LP’s Bruce Richards.
Greece and its private creditors are beginning a final push to renegotiate debt as a member of the investor group said they are likely to get cash and securities with a market value of about 32 cents per euro of government bonds.
Investors should avoid relative-value fixed-income funds for the next two years as the Federal Reserve starts scaling back unprecedented stimulus efforts that helped push borrowing costs to historic lows, according to Marathon Asset Management LP’s Bruce Richards.