Saba's Weinstein says US President Biden would be 'better' for bond market

Rithm Capital

25/06/2024 18:14

NEW YORK, June 25 (Reuters) - Prominent investment
manager Boaz Weinstein on Tuesday said uncertainty about
November's U.S. presidential election may lead to market
volatility but also said President Joe Biden is "better" for the
bond market.
    Weinstein, who runs Saba Capital Management, was speaking at
Bloomberg Invest in New York and was asked to look ahead to the
race for the White House between Biden and former U.S. President
Donald Trump.
    "Biden is better for the bond market," Weinstein said,
adding "Biden is less motivated by the stock market" and is more
focused on what is good for the country and its citizens.
    The stock market has been drifting higher for weeks and has
reached records as investors were relieved to see inflation
moderating. Investors had worried for some time that persistent
price pressures would prevent the Federal Reserve from cutting
interest rates as rapidly or quickly as earlier and more
optimistic forecasts had suggested.
    Besides monetary policy concerns, many bond investors are
also worried that neither candidate will put fiscal
sustainability at the center of their agendas, and the prospect
of further increases in outstanding government debt will at some
point trigger a rise in bond yields.
    Weinstein made headlines most recently last year when he
along with billionaire investors Bill Ackman, Marc Lasry and
Jeff Yass made a rival offer to buy Sculptor Capital Management
after the company had agreed to sell itself to Rithm Capital. 
    Years ago Weinstein was one of a few hedge fund managers to
profit from betting against credit positions taken by a J.P.
Morgan trader known as the "London Whale."   

 (Reporting by Svea Herbst-Bayliss and Davide Barbuscia, Editing
by William Maclean)
 ((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))