Sunday, December 5, 2010

AIM Forum Panelist, Dan Fuss, Not Worried About Investing in Irish Bonds

Dan Fuss, AIM Forum Panelist

Dr. David Krause, director of the Applied Investment Management program at Marquette University said, "We are looking forward to Dan Fuss visiting the AIM program and presenting at our Forum on January 25th. He has been a visionary in the world of fixed income investing - and he continues to lead the way."

Dr. Krause continued, "It has recently been reported that Mr. Fuss has been buying Irish sovereign debt; at precisely the same time when almost all other fixed income investors were selling their holdings. You don't become one of the top bond investors by following the crowd - I wouldn't bet against him. Dan Fuss has made a career out of being ahead of the rest of market and I think he's much wiser as to what's happening in Europe than most other investors."

Dan Fuss has been an investment visionary

Dan Fuss is an MU alumnus and a 'Friend of AIM' - he is the Vice-Chairman of Loomis Sayles, a major Boston-based investment firm. Mr. Fuss, who as vice chairman of Loomis Sayles helps oversee $150 billion of fixed income funds, has recently said that his firm has been buying Irish government debt aggressively for its attractive yield and "very decent" credit quality. He said recently to Reuters, "Two years from now, you will look back on this as one of the brightest things you did. If you have a short-term horizon, this is not for you."

Mr. Fuss continued, "We have a completely different view of Irish debt than the rest of the world. The bonds have been and continue to be cheap. Their yield is attractive relative to the view expressed in the market on Ireland's credit quality." Fuss said Loomis-Sayles has been a buyer in the secondary market and took part in Ireland's 1.5-billion-euros debt auction, purchasing the bonds maturing in 2018 which were priced at an average yield of 6.02%. In total, Loomis-Sayles holds roughly $1.5 billion of Irish government debt.

Click to enlarge. Source: Bianco Reseearch

The graph above is courtesy of Jim Bianco, president of Bianco Research in Chicago. It shows the credit default spreads for the 5-year debt of various European sovereign debt issues, including Irish debt. Dr. Krause said, "Time will tell if Dan Fuss timed the peak of the credit spreads for Irish debt. If the past is a good guide to the future, I'm thinking he's probably timed the best time to enter the Irish sovereign debt market."  

January 2010 CFA Society of Milwaukee Luncheon with Dan Fuss

Dr. Krause said, "Dan Fuss and  the other panelists that will be attending the AIM Forum (including Jim Bianco, Alan Heuberger, and Rob Taylor) are some of the top thought leaders in the world of investing. The AIM Forum on January 25th is one of the highlights for our students and Marquette alumni. Dan and the other Forum panelists will offer unique insights and views on the global and domestic investment environment. I am looking forward to the AIM Forum - and it will be interesting to see how the Irish bonds fare over the next two months since Mr. Fuss stepped into the market before the EU bailout." More information about the AIM Forum will be provided soon.

No comments:

Post a Comment