Investec's Du Toit says credit turmoil may prove best time to invest |
|
|
|
Published
:
Thu, 16 Aug 2007 14:39
|
LONDON (Thomson IM) - The recent liquidity squeeze in credit markets may have thrown up an ideal opportunity to invest in credit, said Henrik Du Toit, chief executive of Investec Asset Management.In an interview with Cantos, Du Toit said now is probably the time to start looking at some high-yield assets because they have re-priced fundamentally compared with a few months ago, when investor demand had sent them to all-time highs.Du Toit said investors with 'strong hands' could acquire these assets, ride out the storm in the market and potentially do quite well out of them despite the current liquidity squeeze.He said many credit funds are not fundamentally in any trouble but are simply facing a liquidity squeeze. That compares with the original source of the liquidity squeeze -- the US subprime problem -- where default rates are rising and actual money is being lost.The wider issue is the impact of the sea change in credit markets on other financial markets and how the ripple effects would be handled over the coming months.He said economic conditions are still quite strong but there has been an appraisal of risk in the credit markets that will have an impact in all other asset markets.As for hedge funds, he said the true extent of the liquidity squeeze will be known in the coming months as some funds had not fully priced or had only estimated prices for the end of the month.By Joyanta Acharjee: +44 (0) 20 7422 4928; joyanta.acharjee@thomson.comjoy/jad/jad/ms1COPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
|
|
|
|
|
|
|
| Stock
Quotes * |
|
NASDAQ
|
|
2792.28 |
22.57 (
0.81 %)
|
| SYMBOL (
2012-01-19 ) |
| LAST |
CHANGE
|
|
CARNIVAL
(
11:35am )
|
|
2017.00 |
46.00 (
2.42 %)
|
|
WHITBREAD
(
11:35am )
|
|
1662.99 |
33.99 (
2.09 %)
|
| SYMBOL (
2012-01-19 )
|
| LAST |
CHANGE
|
|
IBM
(
12:34pm ) |
|
181.50 |
0.43 (
0.24 %)
|
| SYMBOL (
2012-01-19 )
|
| LAST |
CHANGE
|
|
|
Print this Story
Goldman Sachs ratings affirmed on 3 bln usd equity investment in GEO fund - S&P 