Title: Dan Fuss, Money Manager, Loomi
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Blog Entry: a{TEXT-DECORATION:none} (This is not a legal transcript. Bloomberg LP cannot guarantee its accuracy.) DAN FUSS, MONEY MANAGER AT LOOMIS SAYLES, TALKS ABOUT BUYING GOVERNMENT DEBT links of london ON BLOOMBERG links of london JUNE 10, 2010 SPEAKERS: DAN FUSS, MONEY MANAGER, LOOMIS SAYLES MARGARET BRENNAN, HOST "IN BUSINESS", BLOOMBERG NEWS links of london 10:14 MARGARET BRENNAN, HOST "IN BUSINESS", BLOOMBERG NEWS: Welcome back to "In Business". Money manager Dan Fuss of Loomis Sayles beat 95 percent of the competition last year. So when he recently sold all of his Treasury holdings fearing interest rates would rise, the Street definitely took notice. Fuss is with us now, and he joins us this morning. Dan, I want to ask you, there seemingly are a whole lot of people willing to buy government debt these days. You've been at a pretty low rate for themselves. Do you think that the market's overbought? DAN FUSS, MONEY MANAGER, LOOMIS SAYLES: Oh yes, for understandable reasons. You pick up the paper and if I miss the paper, I just rely on you to bring me up to date as to why we have the demand. But that's what happens when you get bubbles in markets. Now reasonable people can certainly disagree. I've heard from a number of people. But I think it's a bubble in U.S. Treasury debt. BRENNAN: You mention reasonable people. BlackRock is buying U.S. government debt, PIMCO recently - Bill Gross came out and said - and we'll bring up the quote actually now. He said it here to my colleague, Tom Keene. "The world's full of dirty shirts in terms of excessive debt, the U.S. is one of those countries. It still remains a reserve currency, and the flight to quality haven. So the U.S. is the least dirty shirt." Why isn't that good enough for you, Dan? FUSS: Well I don't like dirty shirts to begin with. And Rosemary will give me the dickens if I wore one. So when it comes to investing money, I do like U.S. Treasuries better than the treasuries held at the other three reserve currencies. Other parts of the world, once your international, there are a number of currencies that I like better in some of the bond markets. So I go there. But in the U.S., in U.S. dollars, corporates, in my mind, particularly - and this sounds outrageous - but particularly the lower grade area is really cheap. The market is so thin that by being a buyer when there's a thin market, you can get some reasonable values now. It's not the fallible way, but it is a very reasonable time to buy. ultrasonic flowmeter BRENNAN: So you are finding opportunities there right now in the corporate space? FUSS: Oh yes, ultrasonic flowmeter oh yes. There are bits and pieces - ones and twos. It drives you bananas. But if you're there with a bid in a nearly illiquid market - again, this is not the fallible way - you can do some very good investing. And why be in something that in my mind is overpriced because of a bubble and its going to have a ton more issuance? I'd rather go where the credit trend is very good and the bonds are cheap. ultrasonic flowmeter BRENNAN: Well give me more of a global perspective here, because the concerns in Europe are one of the trigger points fo Christian Louboutin Shoes Christian Louboutin Shoes
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