Weekly update

Bitcoin could soar to $150,000 this year, hedge fund manager Mark Yusko predicts

Mark Yusko, a hedge fund manager, is bullish on Bitcoin, forecasting it to surpass $150,000 this year according to reports. Encouraging investors to diversify, Yusko advises allocating between 1% to 3% of their portfolios to Bitcoin, emphasising its superiority over gold. As of Thursday, Bitcoin has surged approximately 159% in the past year, reaching around $70,700. Yusko predicts Bitcoin could increase tenfold over the next decade, citing the recent launch of Bitcoin exchange traded funds and the upcoming halving event in late April as significant drivers for further growth.

He anticipates a supply shock post halving, leading to substantial upward momentum for Bitcoin. Historically, the peak in Bitcoin's price occurs around nine months after the halving, typically toward Thanksgiving or Christmas, before entering a bear market phase. Yusko's firm also holds exposure to , an online crypto trading platform, expecting significant growth prospects for the company. Coinbase's shares have soared nearly 321% in the past 12 months.

GoldenTree Raises $1.3 Billion for Riskiest Slice of CLO Market

GoldenTree Asset Management recently secured $1.3 billion to invest in the riskiest part of collateralised loan obligations, catering to the growing demand for higher risk investments. The New York based firm, led by Steve Tananbaum, surpassed its $1 billion target for the fund. Investors, including public pensions, insurance companies, and family offices globally, have shown interest according to a new report from Bloomberg. Additionally, GoldenTree's partners and employees have committed more than $50 million to the fund.

The fund will focus on first-loss equity tranches of CLOs, aiming for mid- to high-teen net returns. It will also invest in ‘BB’ and ‘B’ rated tranches of CLOs and provide the equity tranche in warehouse facilities. CLOs repackage leveraged loans into different risk tranches. First-loss equity tranches, while riskier, can yield higher returns, as they provide a backstop for CLO warehouses. This move comes as competition intensifies in the $1.3 trillion CLO market. Banks like Goldman Sachs and Morgan Stanley are holding onto riskier parts of new CLOs to bolster their market share. This is GoldenTree's third iteration of the Loan Management program since 2016, bringing its assets under management to over $2.6 billion. Founded in 2000, GoldenTree manages over $54 billion and saw a 15% gain in its master fund last year.