Pine River's Kuhn Sees a Buying Opportunity in Undervalued CMBSby
Pine River Capital Management’s Steve Kuhn sees a buying opportunity in undervalued commercial mortgaged-backed securities.
"There is a lot left right now," Pine River’s capital partner and portfolio manager said in an interview on Bloomberg TV. "There is incredible opportunity."
One of Markit Group Ltd.’s most actively traded CMBX derivative indexes linked to BBB- debt issued in 2013 plunged to 79.7 cents on the dollar on Feb. 11, it lowest level since it began trading in 2014. The measure has since risen to 91.1 cents.
Kuhn said in the same interview that he would be “vastly reducing” his role at the hedge fund to focus on philanthropic work and plans to exit the firm in the “near term”. Pine River, based in Minnetonka, Minnesota, is best known for profiting from bets on mortgage-backed securities after the financial crisis in the U.S.