Reuters reports on "CQS star" Michael Hintze's comments that European loans and some corporate debt are "totally mispriced." Hintze's comments were made at the Reuters Global Investment 2013 Outlook Summit.
More from Reuters:
"There are massive distortions out there," Hintze, whose London-based firm manages $11.9 billion in assets, told the summit on Tuesday.
"BB, B debt is totally mispriced because of ... Basel III (regulations). The European loan market is totally mispriced. I'd even suggest equities might be cheap because of the lack of (bank) prop trading."
Hintze, who is also CQS's chief investment officer and CEO, profited from a net long position in equities earlier this year but recently cut this back to a more neutral position because he was cautious about valuations.
However, he said that stocks looked "attractive" and he was "tending towards" increasing his position, although it was still "a little early".