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US bonds boosted as rate rise moves back

“Volatility always increases at the start of the year, but this time, we are really seeing people buying into the US bond market on the assumption benchmark rates will stay very low until at least 2016,” said Michael Kastner, a managing principal at Halyard Asset Management.

Mr Kastner said such “aggressive” bond buying was “risky”.

“There’s a false sense of security out there among many investors regarding the Fed’s next moves,” he said. “Look at how low Treasury yields are right now, which means there’s not a lot of protection when rates start to rise again.”

Financial Times – 1/20/15 (login required)

 

Deflation fears blur interest rate outlook

Michael Kastner, principal at Halyard Asset Management, says the benefits of cheaper oil prices will more than offset a shakeout for the energy industry.

“We still expect the Fed will raise rates and we could be at 1 per cent by the end of the year,” says Mr Kastner.

Financial Times – 1/9/15 (login required)

 

US energy junk debt sell-off spreads

“The junk bond market is having a hard time and the pressure will continue,” said Michael Kastner, managing principal at Halyard Asset Management. “There are no real buyers right now and mutual funds will keep seeing redemptions.”

Financial Times – 12/12/14 (login required)

 

Refinery and pipeline junk debt outshines

Michael Kastner, managing principal at Halyard Asset Management, said a further fall in the oil price raises the prospect of more underperformance of junk-rated debt, to the detriment of the broader market.

“In fixed income, once you can no longer quantify risk versus return, you head for the exit,” said Mr Kastner. With junk rated debt paying a coupon of 4-6 per cent, he said there was not enough protection against rising losses.

Financial Times – 12/02/14 (login required)

 

Lower US bond yields spur corporate debt sales

“Bankers want to push deals and issuers are looking to take advantage of lower yields,” said Michael Kastner, managing principal at Halyard Asset Management. He expected a flurry of deals before the middle of December, though investors had become more discerning about credit risk, he said.

“Corporate deals are not getting done as easily as they were a couple of months ago. Investors are a little more selective on credit at the moment.”

Financial Times – 12/01/14 (login required)

 

Corporate bond ratings do not discern risk

Michael Kastner, managing principal at Halyard Asset Management says: “There is a view that the Fed will lose its nerve given all the market volatility.” Central bankers had already forfeited markets’ full confidence before this week; now they are starting to be intimidated by them.

Financial Times – 10/17/14 (login required)

 

Corporate bond ratings do not discern risk

“Margin is a concern and can certainly result in you being taken out of a trade,” says Michael Kastner, managing principal at Halyard Asset Management.

But there are silver linings. One resides in companies’ hefty stock buy back programmes, says Mr Kastner.

“I’m constructive on the share market as companies have a mandate to buy back their stock, and many of the large-caps in the S&P can be aggressive.”

Financial Times – 10/16/14 (login required)

 

Corporate bond ratings do not discern risk

“The demand for bonds has been so great in recent years that people have looked beyond the credit rating as they just want yield – any type of yield,” says Michael Kastner of Halyard Asset Management.

Financial Times – 09/18/14 (login required)

 

One investor’s junk (bond) another’s treasure

CNBC’s Jeff Cox, and Michael Kastner, Halyard Asset Management, discuss why retail investors are steering clear of junk bonds while institutional money is buying.

http://video.cnbc.com/gallery/?video=3000303435

 

Finance: The FICC and the dead

Michael Kastner, principal at Halyard Asset Management, says relationships with banks “are not nearly as close as they once were” given the shifting regulatory backdrop.

This has spurred Mr Kastner to hold “liquid” fixed-income securities – or those that can more easily be sold. He says he is steering clear of certain bonds, such as asset-backed instruments whose so-called secondary markets are not deep.

“When things get sloppy, it can be tough to get out of certain fixed- income products,” says Mr Kastner.

Financial Times – 08/11/14 (login required)

 

Inflation is needed to calm asset bubbles

Mr Kastner says Fed policy has driven investors into areas of the market and exuberance that typified the end of the last boom in 2007. But he worries that changes since then have exposed retail investors to greater excesses with credit derivative securities being packaged into exchange traded funds and how small investors are now able to invest in illiquid hedge fund strategies. He also contends that junk bonds and the bank debt market “is approaching bubble territory”.

Michael Kastner, principal at Halyard Asset Management, says the common refrain from retail and professional investors is the complaint that they need to do something with their cash.

Financial Times – 07/18/14 (login required)

 

Bank bonds gain edge on stocks as risk factor fades

Michael Kastner, principal at Halyard Asset Management, says the increased regulatory oversight on US global banks means a catalyst to drive their share price higher is no longer present. He says investors are trying to work out whether “the Fed wants these banks to be innovative and create new products that can drive earnings or are we going back to an older safer banking model”.

The divergence between banks and their price to book ratios is not surprising says Mr Kastner. “Global banks have exposure to all the problems in other parts of the world so investors have to consider what these institutions have on their books that they may not know.”

Financial Times – 07/17/14 (login required)

 

US data mix-up sparks market swings

Michael Kastner, principal at Halyard Asset Management, said: “It’s embarrassing for ISM, we usually get a revision a month or so later.” After the initial print that was softer than expected, Mr Kastner said: “I was scratching my head when it came that low.”

Financial Times – 06/02/14 (login required)

 

Asia and Europe feel the pain as US tech rout spreads

Michael Kastner, principal at Halyard Asset Management, said the growth potential for biotechs remained promising but the sector had become expensive.

“In terms of investment stories, it’s good for investors but prices have run up so much that I think we are seeing some aggressive traders pushing it around.”

Financial Times – 04/11/14 (login required)

 

Junk bond investors dig deep for value

“We are at a very late stage in the high-yield rally,” says Michael Kastner, principal at Halyard Asset Management. “But people chasing yields look at how well these bonds did in the last couple of years and assume they can replicate that.”

Financial Times – 04/08/14 (login required)

 

US equity bulls confident growth will speed up

“A strong jobs number should see the S&P 500 push through 1,900 as the data will force the doubters off the sidelines and back into stocks,” said Michael Kastner, principal at Halyard Asset Management. “If we get a weaker number the market will reset a little lower and wait for further data.”

Financial Times – 04/03/14 (login required)

 

Neck-and-neck rally for US stocks and bonds

“We have to see an uptick in economic activity,” says Steven Boyd, principal at Halyard Asset Management, who thinks bond yields are too low.

“I think we will see a bounce back in the economy. If we don’t, then the bond market will be proven right.”

Financial Times – 03/03/14 (login required)

 

S&P’s rise underpinned by borrowed money

“If we see the economy bounce back and grow near 3 per cent, the S&P can rise further,” said Steven Boyd, principal at Halyard Asset Management. He said the greater use of margin debt was a sign of confidence that the recent soft tone in data are attributable to cold weather and that pent up demand will drive a rebound in the coming months.

Mr Boyd said the record use of margin would be a concern if valuations for the S&P were around a forward earnings multiple of 20 times, rather than the current 17 times.

Financial Times – 03/02/14 (login required)

 

Investors encounter Fed stuck on Autopilot

“Stocks have been under pressure this month and there is a feeling that as goes January, so goes the year,” says Michael Kastner, managing principal at Halyard Asset Management. “I think both stocks and bonds are getting it wrong here, yields should be higher and I suspect investors like last year will be rewarded for buying stocks as they pull back.”

Financial Times – 01/30/14 (login required)

 

US investors begin 2014 with contrarian bets

“It’s a contrarian play out of the gate as the year begins,” said Michael Kastner, managing principal at Halyard Asset Management. “The change in the calendar can be a good time to make portfolio changes.”

Financial Times – 01/07/14 (login required)

 

Fed deftly swaps tools to investor applause

“For the time being the Fed is doing a good job with its forward guidance but if the economy cranks up, they will look foolish saying rates will stay low for longer,” says Michael Kastner, managing principal at Halyard Asset Management. “No matter what the Fed may say, the market will price in a closer start date for rate hikes if the data warrants that reaction.”

Financial Times – 12/19/13 (login required)

 

Investors take Fed taper fever in their stride

Michael Kastner, managing principal at Halyard Asset Management, plays down the likelihood of a taper decision next week but adds: “The Fed has been so wishy-washy about the taper this year, you can’t rule out a December taper.”

Financial Times – 12/10/13 (login required)

 

Bubble fears as US stocks hit records

“The current rally has robbed a bit of next year’s performance,” says Michael Kastner, managing principal at Halyard Asset Management.

Mr Kastner says: “We seem to have moved from investing under sensible valuations to one of the greater fool theory, hoping there is another buyer willing to pay a higher price at these extended levels.”

Financial Times – 11/20/13 (login required)

 

Barclays issue to test demand for cocos

“When I consider buying a bond, it is important to have some degree of comfort the issuing entity will pay some of my money back even if it goes into default,” said Michael Kastner, a principal at Halyard Asset Management. “The coco structure defeats that purpose.”

“There are always investors out there willing to turn a blind eye to weaker credit quality or higher risk in order to capture more yield,” said Mr Kastner.

Financial Times – 11/13/13 (login required)

 

US moves closer to partial government shutdown

“This is a critical period of the year for the economy and the last thing you want to see is business and consumers retrenching spending,” said Michael Kastner, principal at Halyard Asset Management. “As we have seen in the past, equities can take quite a hit when Washington’s battles turn ugly.”

Financial Times – 09/29/13 (login required)

 

US equities retreat after fresh highs

“Investors will once more look for equities that have a yield. We are going back to that world,” said Michael Kastner, a principal at Halyard Asset Management.

Financial Times – 09/19/13 (login required)

 

Fed’s communications credibility takes a knock

“I was floored and it leaves their credibility in a shambles,” said Michael Kastner, principal at Halyard Asset Management. “They communicated the taper was coming and now it’s – ‘we changed our mind’.”

He added: “Ultimately we will see higher bond market volatility as the exit from QE is further complicated.”

Financial Times – 09/18/13 (login required)

 

Verizon set for blockbuster bond sale

“Given the size of this deal and in order to attract a large pool of investors, concession may have to be such so that these bonds have to become profitable pretty soon,” said Michael Kastner, principal at Halyard Asset Management.

Financial Times – 09/11/13 (login required)

 

Blockbuster Verizon bond sale to test debt appetite

“Verizon will be an enormous deal and has the potential to destabilise the market or be the catalyst for a rebound in corporate bond sentiment,” says Michael Kastner, principal at Halyard Asset Management.

Financial Times – 09/05/13 (login required)

 

Fed taper to test demand for Treasuries

Michael Kastner, principal at Halyard Asset Management says there is a risk that bond yields rise further as economic growth for the second quarter and the July jobs number is revised upwards.

“It looks like the economy has underlying strength and as an investor you have to respect the bond selling we saw in May and June when the taper was introduced by the Fed.”

Mr. Kastner says caution over Treasuries is warranted, in spite of much higher yields since May.

“Buying the 30-year around 3.75 per cent may appeal to some investors, but there is a risk that its yield rises to 4 per cent and that’s a meaningful hit to a portfolio.”

Financial Times – 08/07/13 (login required)

 

Investors bet on junk bonds to outperform

Michael Kastner, managing principal at Halyard Asset Management, says he is hedging the duration risk in his portfolios from owning longer-dated corporate bonds with interest rate futures.

“We are adding exposure across all sectors and see investment grade clawing back some ground on junk,” he says.

Financial Times – 07/30/13 (login required)

 

QE worries drive Treasury rates up

“No one wants to own Tips and the lack of Fed talk as yields have risen suggests they are letting the market feel its way,” said Michael Kastner, managing principal at Halyard Asset Management.

Financial Times – 06/11/13 (login required)

 

Record $12.5bn outflows from bond funds

“We are definitely worried that the market is in a cycle where selling of bonds begets more selling,” said Steven Boyd, principal at Halyard Asset Management.

The hefty outflows illustrate the anxiety of investors ahead of the May employment report due on Friday. The Federal Reserve has indicated that its suppression of interest rates under quantitative easing depends on the tone of economic data, led by the monthly jobs figures.

“‘The jobs report will be a harbinger for how bonds trade during the rest of the month,” said Mr Boyd.

Financial Times – 06/07/13 (login required)

 

Markets whipsaw on Fed uncertainty

“No one likes to see equities close at their low on a Friday as it sets the market up for an ugly open the following week,” said Michael Kastner, managing principal at Halyard Asset Management, adding that short sellers in the Treasury market were closing positions later in the day.

Financial Times – 05/31/13 (login required)

 

Market bulls run into the sand

“Volatility is here for a while and will rise further,” said Michael Kastner, principal at Halyard Asset Management. “It’s clear that Bernanke wants to prepare markets for less stimulus. Stocks look expensive and a correction would be healthy.”

Financial Times – 05/23/13 (login required)

 

Apple cleans up with $17bn US bond issue

“As a bond investor you don’t want to buy debt which is being used to fund share buybacks, but in the case of Apple, it’s a drop in the ocean compared to the size of their overall cash holdings,” said Michael Kastner, principal at Halyard Asset Management.

Financial Times – 04/30/13 (login required)

 

Apple bond sale attracts wide response as CEO looks to appease shareholders

Michael Kastner, principal at Halyard Asset management in New York said bond buyers were usually wary of buying debt from companies seeking to buy back shares but that because Apple was sitting on so much cash, this was likely to be a very popular sale.

Kastner said it was part of a larger trend as corporations seek to take advantage of historically low interest rates. “Companies are borrowing cheap and buying back shares and in the process improving their earnings per share. We saw this in the last low interest rate cycle, but never to this degree,” he said.

Kastner said that the corporations were likely to continue turning to the bond market to raise cash for as long as the Federal Reserve keeps rates low.

The Guardian- 04/30/13

 

Crowds line up for a bite of Apple’s big bond

“Corporations are really coming out of the woodwork after earnings season to sell debt and buy back stock,” says Michael Kastner, principal at Halyard Asset Management.

Financial Times – 04/30/13 (login required)

 

More bond investors bet on US rate rise

Michael Kastner, a principal at Halyard Asset Management, said US Treasury yields look vulnerable if economic data surprises positively.

“Traders and real money investors are looking to lessen their interest rate sensitivity, and are looking at floating rate notes and short dated bonds,” he said.

Financial Times – 03/19/13 (login required)

 

Wall St turbulence sparks valuation fears

“The equity market looks a little bit expensive, with some blue-chips trading at frothy levels, especially as earnings expectations continue coming down for this year,” says Michael Kastner, principal at Halyard Asset Management. “I am sceptical about some of the bullish analysts’ earnings forecasts, and there is a big question over the profits outlook for this year given the current economic situation.”

Financial Times – 02/26/13 (login required)

 

Mediocre Sale Sets Treasurys Back for Third-Straight Session

“If we focus back on the sequester, we could actually see yields fall a little more before getting to higher levels,” said Michael Kastner, principal at Halyard Asset Management.

Euroinvestor – 02/13/13

 

Investors face end of big US bond returns

“It’s been a one-way street for a long time,” says Michael Kastner, principal at Halyard Asset Management. “This time last year it was a lot easier to buy investment grade bonds, but now rates are very low. You don’t need to see rates rise that much in order to erode a small coupon.”

Financial Times – 02/05/13 (login required)

 

Fears grow over investment-grade debt

“The Street has less appetite for bonds, and when ETFs need to sell, there is potential for an ugly reversal,” says Michael Kastner, a principal at Halyard Investment Management. “As rates move higher we will start to see investment managers sell lower-quality paper.”

Financial Times – 01/23/13 (login required)

 

Billions pumped into global equities

“Investors are over-optimistic on earnings and we think the debt and fiscal issues could come back to bite the market hard,” said Michael Kastner, principal at Halyard Asset Management.

Financial Times – 01/11/13 (login required)

 

Brace for a game of chicken on fiscal cliff

“The fiscal cliff does matter and markets should be worried,” says Michael Kastner, principal at Halyard Asset Management.

Financial Times – 12/14/12 (login required)

 

Instant View: November nonfarm payrolls rose by 146,000

MICHAEL KASTNER, PARTNER, HALYARD ASSET MANAGEMENT, WHITE PLAINS, NEW YORK

“I’m kind of surprised. It’s hard to figure out with what’s going on with Sandy. The market was looking for something very different. Overall it’s good to see. The payroll number is very encouraging. The bond players are not buying it though because the long end would have sold off more.”

Reuters – 12/07/12

 

Bond markets: A false sense of security

“We spend a lot of time worrying about the bond unwind,” says Michael Kastner, managing principal at Halyard Asset Management. “A lot of money has piled into the sector and will go in the opposite direction at some stage, they are clearly in bubble territory. Everyone in bonds has the same idea that they can get out before others when the market turns.”

Financial Times – 11/18/12 (login required)

 

US investors fret over dividend tax

Michael Kastner, partner at Halyard Asset Management, says the real shock for ordinary investors will not register until they see their tax bills. “Initially, professional investors will sell dividend payers and after some calm people will see how much tax they need to pay and we will then see another round of selling.”

Financial Times – 11/12/12 (login required)

 

Slowdown set to take toll on US earnings

“Even with lowered expectations, earnings could disappoint and place stocks under pressure,” said Michael Kastner, principal at Halyard Asset Management.

Financial Times – 10/07/12 (login required)

 

Facebook tumbles as lock-up expires

“It’s such a broadly known name and small investors who bought into the stock were expecting an immediate payday, only for the story to turn ugly,” said Michael Kastner, principal at Halyard Asset Management. “It was perceived as a sure money thing but has left a sour taste in the mouths of retail investors.”

Financial Times – August 16, 2012 (login required)

 

US blue-chips lock in low interest rates

“These companies are funding themselves at remarkably cheap rates,” said Michael Kastner, principal at Halyard Asset Management. “It’s very sensible from their standpoint to lock in borrowing at these rates.”

Financial Times – July 30, 2012 (login required)

 

Investors head to ‘big-cap’ US

“If you want to edge back into the market, then defensive high dividend paying and big name stocks are the way for some investors,” says Michael Kastner, principal at Halyard Asset Management.

Financial Times – July 20, 2012 (login required)

Fed policy drives down yields

“Bank debt was absurdly cheap at the end of last year and performance has been very good this year,” said Michael Kastner, principal at Halyard Asset Management. “There is still room for bank debt to rally further, but investors should be prepared for volatility in the event of credit rating downgrades and any flare-up in the eurozone.”

Financial Times – May 1, 2012 (login required)

 

Bond bulls caught in US Treasuries sell-off

Michael Kastner, principal at Halyard Asset Management, says: “The rule of thumb is that the 10-year yield should be 100 basis points over the current inflation rate, which suggests a yield closer to 4 per cent.”

Financial Times – March 15, 2012 (login required)

 

Bloomberg Brief – Municipal Market – March 8, 2012

Tax-Selling, Sticker Shock Dent Bond Prices

Investors sell munis now to pay tax bills because many consider the securities “like cash,” said Steven Boyd, a principal with Halyard Asset Management LLC, which oversees $400 million.

Download File (PDF)

 

Dollar bond rush sets record pace for deals

“We will see a lot more issuance from companies looking to fund equity buybacks via low borrowing costs,” says Michael Kastner, principal at Halyard Asset Management.

Financial Times – March 7, 2012 (login required)

 

Scramble to sell US debt as yields hit record lows

Michael Kastner, principal at Halyard Asset Management says the strong start for debt issuance this month will continue as companies look to take advantage of low yields. “This is just the start and we expect an onslaught of issuance as spring unfolds. Rates are low and corporate treasurers are making sure they get in before rates rise,” he said.

Financial Times – March 5, 2012 (login required)

 

Benefits of Treasuries start to wear thin

“It’s not too early to call the end of the bond bull market,” agrees Michael Kastner, principal at Halyard Asset Management. “With negative real returns, it makes no sense to hold Treasuries and the fear trade can only be maintained for so long in a situation where the Fed is actively pursuing inflation.”

Financial Times – March 1, 2012 (login required)

 

Bernanke strikes a downbeat tone

“I think the gold guys thought Bernanke would be more positive about the prospects for QE3,” said Michael Kastner, principal at Halyard Asset Management.

Financial Times – February 29, 2012 (login required)

 

Fed rate stance lifts the appeal of equities

“The gain we have seen in stocks since October is important for confidence and gives investors something positive to look at when they open their statements,” says Michael Kastner, principal at Halyard Asset Management.

Financial Times – January 26, 2012 (login required)

 

Negative yield fails to deter appetite for Tips

“Investors tend to look at past returns and superimpose that on the next 12 months,” says Michael Kastner, principal at Halyard Asset Management.

Financial Times – January 19, 2012 (login required)

 

Action by central banks lifts rally hopes

“We need to see equities stabilize and focus on economic data,” says Michael Kastner, principal at Halyard Asset Management. “Decembers can get really nasty as people pack it in and move to the sidelines and there is a good chance investors get chopped up by the volatility.”

Financial Times – November 30, 2011 (login required)

 

Clearwater Analytics – Case Study – Halyard Asset Management

Starting Strong – How Halyard Asset Management Leveraged Technology to Offer Best-In-Class Service

Download File (PDF)

 

S&P 500 surges 4% after dipping into bear market

“It’s good to see a bounce in stocks. It’s been a one-way street for several days now,” said Michael Kastner, principal at Halyard Asset Management. “But volatility is so high, it’s unclear which way the market will eventually go.”

Financial Times – October 4, 2011 (login required)

 

Hedging fuels commodities and credit volatility

Michael Kastner, principal at Halyard Asset Management, said that had also pushed hedge funds to trade more defensively. “The Street has closed down its prop desks, reducing liquidity and making for more volatile swings in prices.”

Financial Times – September 30, 2011 (login required)

 

Muni-Bonds’ $230 Billion Tax Savings Make Exemption Supercommittee Target

“They’re looking at everything, and the tax exemption is on the table,” said Steven Boyd, principal with Halyard Asset Management LLC in White Plains, New York, which oversees $400 million. “It’s a factor weighing on investors’ minds.”

Bloomberg – September 23, 2011

 

Dollar’s rebound bodes ill for Wall Street

Michael Kastner, principal at Halyard Asset Management, says: “The dollar is something to watch and it will have an impact, no doubt about it.”

Financial Times – September 19, 2011 (login required)

 

Investors rush to safety amid another big drop in U.S. stocks

“You’ve got some price-insensitive [bond] buyers coming out of stocks and going into Treasuries,” said Mike Kastner, a partner at Halyard Asset Management in White Plains, N.Y. “I think it’s a deer-in-the-headlights-type reaction — nobody knows what to do.”

LA Times – August 19, 2011

 

Vix volumes reach record high

“Vix is an interesting indicator but as a former options trader I like to directly buy options on specific stocks rather than an entire index,” says Michael Kastner, principal at Halyard Asset Management.

Financial Times – August 3, 2011 (login required)

 

Rush for safety sends core debt yields tumbling

“Fundamentally, I don’t see QE3 and would not like to see it, but you can’t rule it out,” says Michael Kastner, principal at Halyard Asset Management.

Financial Times – August 2, 2011 (login required)

 

US standoff undermines risk appetite

“This is the first warning from the stock market to Washington about the debt ceiling and the risk of a downgrade,” said Michael Kastner, principal at Halyard Asset Management. “There is a growing consensus among investors that there is a 50 per cent chance that the US debt does get downgraded,” said Mr. Kastner. “Equity investors are looking to get out.”

Financial Times – July 27, 2011 (login required)

 

Investors follow herd in volatile quarter

“It’s hard to quantify what is a risk asset at the moment,” says Michael Kastner, principal at Halyard Asset Management. “We see more crowded trades than we did before the financial crisis.”

Financial Times – June 30, 2011 (login required)

 

Yields rise sharply after this week’s poor debt sales

“Managers are not sure what securities they want to hold for window dressing their balance sheets for quarter end,” said Michael Kastner, principal at Halyard Asset Management. “Treasury yields look like they are heading higher from what were ridiculously low levels.”

Financial Times – June 29, 2011 (login required)

 

Corporate bond risk premiums soar

Michael Kastner, partner at Halyard Asset Management, said the sell-off in subprime mortgages was compounding the angst in credit markets. “Clearly we are seeing a de-risking with credit spreads widening and levered loans weakening,” he said. “People are rethinking where they want to be in credit at the moment.”

Financial Times – June 17, 2011 (login required)

 

Key bond yields fall amid global growth fears

“Equities still have value, and bond yields are too low here,” said Michael Kastner, principal at Halyard Asset Management.

Financial Times – May 29, 2011 (login required)

 

May’s swoon disconcerts investors

“I’m not a big fan of the ‘sell in May and go away’ approach as you can miss out on trading opportunities, but it has gained traction with so much uncertainty lingering out there,” says Michael Kastner, partner at Halyard Asset Management.

Financial Times – May 27, 2011 (login required)

 

Firms Adopt New Tools to Aggregate Reports

“We can look at aggregated information as one portfolio, break it down by individual manager or even view it by line item.” – Steven Boyd, Halyard Asset Management

Wall Street & Technology – April 8, 2011

 

Bond investors could be in for another rough ride

“Even with bond yields up sharply since October, additional strong economic data could pose a “growth shock” for bonds that would fuel another move up in yields, said Michael Kastner, a partner at Halyard Asset Management in New York.

Los Angeles Times – February 7, 2011

 

Bond issuers start the new year running

“The appetite for floaters is huge, and investors are looking at them as mitigating losses from sharply higher interest rates this year,” says Michael Kastner, principal at Halyard Asset Management.

Financial Times – January 6, 2011 (login required)

 

Risk Appetite poses new year threat to bonds

“A majority of investors believe we will get a balance of good and bad news that keeps rates range-bound, while a minority is split between thinking the US will double dip or the recovery strengthens next year,” says Michael Kastner, partner at Halyard Asset Management.

Financial Times – December 23, 2010 (login required)

 

Bond Prices Surge as Investors See Signs of Stability

“I think it’s a bounce-back rally. We’ve been under such pressure for a while now and I think going into year-end there’s some buying coming in,” said Michael Kastner, principal at Halyard Asset Management in White Plains, New York.

Reuters – November 16, 2010

 

Treasury bonds suffer a post-QE2 shakeout

“The easy answer is to say buy the rumor, sell the fact and, in this case, that’s what has happened,” says Michael Kastner, principal at Halyard Asset Management.

Financial Times – November 15, 2010 (login required)