Pine River's Teichholtz Happy About Regs, Likes CMBS

Nov 21 2013 | 12:37pm ET

New financial regulations will be a boon to credit hedge funds like his, Pine River Capital Management's Colin Teichholtz predicts.

Teichholtz told the Reuters Global Investment Summit that new global rules are pushing Wall Street banks out of the trades he wants to make.

"All of these rules are basically sending the same message to big banks—you have got to reinvent your fixed-income business," Teichholtz, co-head of fixed-income trading at Pine River, said.

"From my perspective, that means there's a lot less competition from Wall Street."

Teichholtz said he's still investing in residential mortgage-backed securities, although he likes commercial MBS even better. "We are being paid very well to take the risk," he said.

He also said that Pine River has recently gotten into the municipal bond space, one it has not previously "played."

"The muni market is one that's very prone to throwing the baby out with the bathwater," he said. "There's not the differentiation that there should be."

Teichholtz added that Pine River also sees "an opportunity in catastrophe bonds."


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...

 

FINalternatives Trending

From the current issue of