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Michael Browne From Komfie Manalo, Opalesque Asia:
"There is a great deceit that exists between bonds and equities. There is always an equity price yet this is something that can not be said for bonds, especially any bond outside of the most sought after, high quality sovereign bonds. At best there is always a price gap, at worst no price at all," this was the statement by Michael Browne, a director at Martin Currie, a 130-year-old global equity institution based in Edinburgh during the inaugural Opalesque Monaco Roundtable took place in Monaco last month.
The Roundtable and was sponsored by Salus Alpha and Eurex.
Browne continued, "This is, after all, the deceit that so many banks have floundered on. Having realized they held a highly illiquid asset, they were forced to try to find a bid, way below par and were then forced to mark that bond down in their balance sheets, thus destroying them. This is the great deceit about the safety of the bond market - its lack of liquidity when it matters most."
Browne also urged panellists in the Roundtable to take a look at the long/short equity business and shorting. According to him, in the past, a manager often earned 5% interes...................... To view our full article Click here
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