Paul Singer: Abandon All Hope, Ye Who Enter This Bond Market

Bright side: When all this is over it'll make for a great horror story for Singer to tell small children at bedtime with a flashlight under his chin.
Getty Images

Getty Images

Further advice: build yourself a safe room/run for your god damn lives.

In a bleak new letter to investors, Paul Singer's Elliott Management warns that the bond market is "broken" and that when the central bank actions of recent years no longer ward off a market downturn, the subsequent loss of confidence could be severe. The fund's recent investor letter, which covers the second quarter, notes that Elliott's managers are currently seeing "what is in many ways the most peculiar period we have faced in 39 years." ... Trading in this market is particularly difficult, it adds. "Everyone is in the dark," Elliott notes. "Experience doesn't count for much, and extreme confidence may be fatal." Moreover, "the ultimate breakdown (or series of breakdowns) from this environment is likely to be surprising, sudden, intense, and large."

Paul Singer fund: Market 'breakdown' to be 'sudden, intense, and large' [CNBC]