Pine River's Teichholtz Happy About Regs, Likes CMBS

Nov 21 2013 | 11:37am 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."


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