By Sam Forgione and Steven C. Johnson
NEW YORK May 8 Paul Singer, founder of Elliott
Management, said Wednesday at the Sohn Investment Conference in
New York that developed countries are facing "long-term
insolvency" and that monetary stimulus is distorting the prices
of long-term bonds.
"I'm not recommending short selling long-term bonds, ... but
what I would say is those who own long-term bonds in the U.S.,
UK, Europe or Japan own assets which are trading at the wrong
price," said Singer, whose hedge fund has $21 billion in assets
Singer said the global financial system remains "opaque,"
and he blamed stimulus measures like the U.S. Federal Reserve's
$85 billion in monthly bond purchases for skewing the global
recovery and the pricing of long-term bonds.
"These prices are distorted," Singer said of the long-term
bonds. "If you own them you should know about the distortion,
and there is not a safe haven today in my view in today's
"Everyone wants a safe haven. ... There is no such thing in
today's markets and that's one of the sad elements of the