American bondholder backs Ireland to produce phenomenal economic turnaround
Rare interview by Hasenstab, the investor on track for $6 billion profit
The American investor who stands to make a $6billion profit on Irish bonds has backed the country to produce ‘one of the best investments of the decade’.
California based trader Michael Hasenstab believes the turnaround in the Irish economy will be phenomenal and he is more than happy to profit from it.
Hasenstab also warned those traders who failed to follow his gamble that they will suffer ‘a fair amount of regret’.
As the holder of one of 10 of all Irish bonds, the 39-year-old partner at assets management company Franklin Templeton knows what he is talking about.
In an interview with the Irish Times newspaper, Hasenstab denied however that his holding of Irish government bonds was ‘driving’ the Irish bond market which is worth about $105 billion.
He told The Irish Times: “We bought a lot of Irish securities at very distressed prices which means someone was selling those bonds.
“I think there’s a fair amount of regret by some people who sold those at distressed prices when they are now trading at par [face value] or above par.
“I think there is also some regret from people who missed what I would argue is one of the best investments of the decade: the Irish turnaround.”
Hasenstab, who oversees $165 billion in investments for Franklin Templeton, began buying Irish government bonds in July 2011.
His move came as Ireland was downgraded to ‘junk’ status by credit rating agency Moody’s and bond yields were trading above 14 per cent.
The Irish Times explains: “Since then, as the company’s holding has risen to an estimated 10 per cent of the entire Irish sovereign bond market, yields have fallen to about 4 per cent.
“The accompanying rise in bond values leaves Franklin Templeton sitting on billions of euro of paper profit. Over the last 18 months, his funds have increased their purchase of Irish bonds in the secondary markets, while also participating in the NTMA’s primary issuance of Irish government bond earlier this year.
“During this period, yields on Irish government bonds have fallen to about 4 per cent.”
Hasenstab backs the belief that Ireland should get relief on its historical bank debt from the bail-out partners.
He said: “Ireland deserves it. Ireland is benefiting from the fact that it took the tough medicine upfront but the terms that they got from official support probably could be revisited.”
- Gay wedding cakes latest target of anti-gay...
- Racist incidents in Ireland up by 85 percent...
- An open letter in strong defence of capitalism.
- A Magdalene Laundry US adoptee who holds...
- Irish radio presenter suspended after anti-Isra
- Nelson Mandela was against IRA decommissioning.
- Families as well as Catholic Church and governm
- Baby dies in horror birth at Belfast hospital...
- Gay teacher fired from Catholic school after...
- Sarah Palin is saving Christmas
I know of one very Irish guest house operated by an Irish couple in Connecticut, near my wife's hometown. She and I have spent a few nights there arouNelson Mandela once considered a terrorist by many Irish political leaders
You should hear in the USA the right wng extremists calling Nelson Mandela all kinds of names and insults...........Why because he is black. These riVirginia governor slammed by doctor over plain cigarette pack rejection
YOur welcome to smoke - and take a decade off you life from lung cancer, throat cancer, nicotine scaring the arteries which provides places where plaAn open letter in strong defence of capitalism to Pope Francis
I'm not caht but he's a great guy, especially compared to his past extremist right wing German pope As for capitalism, in the USA, the gap between th