SINGAPORE (Reuters)- Selling both U.S. bank stocks and long-term Treasury bonds are likely to be profitable trades as world’s largest economy faces a potential recession and rise in inflation, hedge fund manager Man Investments said.
Thomas Della Casa, head of research at Britain’s Man Investments, said U.S. banks are likely to writedown more of their credit losses stemming from the turmoil in the U.S. housing loans market.
"We are not done yet with all the writedowns," he told a news briefing at the opening of the firm’s Singapore office on Thursday. Man Investments is part of the Man Group (EMG.L: Quote, Profile, Research), the world’s largest listed hedge fund firm, which manages about $72 billion globally.
Banks around the world have been hit by huge losses related to U.S. subprime mortgages, home loans often extended to people who have payment difficulties or a bad credit history.
"Banks are still trying to find out what kind of structures they are holding on to, how to value them," Della Casa said.
