This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Kyle Bass Answers Questions At iCIO Investment Summit

Stocks in this article: F GM HLF jcp SLB

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) 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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs