Financial Times – 8/11/14

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.

Finance: The FICC and the dead

Financial Times – 7/18/14

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.

Inflation is needed to calm asset bubbles

Financial Times – 7/17/14

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.”

Bank bonds gain edge on stocks as risk factor fades

Financial Times – 4/11/13

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.”

Asia and Europe feel the pain as US tech rout spreads

 

Financial Times – 4/8/14

“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.”

Junk bond investors dig deep for value

Financial Times – 4/3/14

“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.”

US equity bulls confident growth will speed up

Financial Times – 3/3/14

“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.”

Neck-and-neck rally for US stocks and bonds

Financial Times – 3/2/14

“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.

S&P’s rise underpinned by borrowed money

Financial Times – 1/30/14

“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.”

Investors encounter Fed stuck on Autopilot

Financial Times – 1/7/14

“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.”

US investors begin 2014 with contrarian bets