Richard Perry Bearish on Spain and Italy
Richard Perry, CEO of Perry Capital appeared at CNBC's Delivering Alpha Conference on Wednesday. He participated in the Global Opportunities panel that was moderated by a Squawk Box co-anchor Becky Quick. Other panelists included Peter Briger, Mary Callahan Erdoes, and Jane Mendillo.
During the panel, Perry noted that “the Swiss and German bonds have a negative risk.” The apparent safety has made many investors to put their money into these bonds, which has pushed the yields of the Swiss, Finnish, and German 2-year bonds to the negative territory. He was also very bearish on Spain and said the country is the biggest problem they have identified. Perry also stated that “you can't have Spain or Italy on your books today.”
In addition, Perry discussed the housing market and role of Fannie Mae and Freddie Mac. He noted that “Government is Owed $140B by Fannie and Freddie.” Perry said he think that the core business of these two companies is good, if people are putting in real money. In his opinion, the way to get the US economy going is to give people new mortgages.
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