This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kyle Bass Answers Questions At iCIO Investment Summit

Today, Kyle Bass, founder and principal of Hayman Capital Management, spoke at the iCIO Investment Summit in New York City. He spoke and took questions on a range of issues, and ValueWalk was there to take notes on the event.

Also see: Mark Yusko and John Mauldin iCIO Summit Presentations

Also see: Kyle Bass Calls General Motors Best-In-Class, Takes A Position

Also see: Kyle Bass On Potential War Between Japan And China

Also see: Kyle Bass: Japan Is Insolvent; U.S. Q.E. Only Making The Rich Richer

Kyle Bass on Argentina

Argentina is a pretty Interesting place to invest, but let’s look at what is wrong first. It has the largest sovereign default, and Paul Singer is still fighting it out. 25% inflation, capital controls etc., but maybe it’s time to start looking at is as a long.

Kyle Bass

Rwanda, Nigeria Kyle Bass once invested in a mine there which was nationalized can all raise money for much lower cost than these countries. The European discounts have a 12% yield trading at 73 cents. The court case will could be settled and Paul Singer will win, but Kyle thinks Argentina actually has a really good chance of winning. Argentina pays debts in dollars and Euros and compared to neighbors Argentina is almost at the top. The investment thesis is that the credit risk is priced in too high. There is a capacity to pay and the government plans to pay – it’s only 1% of GDP, 6% of TA revenue – but their real problem is that inflation is much higher than they admit, which is partially due to oil imports. However, imports will switch around and be oil rich soon.

The President is gone in 2015 and the top candidates are both pro business. Argentina has found the second-largest shale formation in the world and oil experts Kyle spoke to said it’s high quality and could get $100 billion in investments. Halliburton Company (HAL), Schlumberger Limited. (SLB - Get Report) etc. are all sending teams now and balance of payments will improve over the long term. Sovereign debt is a great way to invest and once the Supreme Court case is over they will be able to access capital markets and then it is a new ballgame as elections come up.

The price caps and capital controls are so rigid once they are removed right now everything is paid in cash – they should pay par and risk of default is really low, you want to own assets as these come under control.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
F $11.55 0.00%
GM $27.71 0.00%
HLF $44.64 0.00%
JCP $6.99 0.00%
SLB $70.31 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs