Saba's Weinstein says US President Biden would be 'better' for bond market

NEW YORK (Reuters) - Prominent investment manager Boaz Weinstein on Tuesday said uncertainty about November's U.S. presidential election may lead to market volatility but also said President Joe Biden is "better" for the bond market.

Weinstein, who runs Saba Capital Management, was speaking at Bloomberg Invest in New York and was asked to look ahead to the race for the White House between Biden and former U.S. President Donald Trump.

"Biden is better for the bond market," Weinstein said, adding "Biden is less motivated by the stock market" and is more focused on what is good for the country and its citizens.

The stock market has been drifting higher for weeks and has reached records as investors were relieved to see inflation moderating. Investors had worried for some time that persistent price pressures would prevent the Federal Reserve from cutting interest rates as rapidly or quickly as earlier and more optimistic forecasts had suggested.

Besides monetary policy concerns, many bond investors are also worried that neither candidate will put fiscal sustainability at the center of their agendas, and the prospect of further increases in outstanding government debt will at some point trigger a rise in bond yields.

Weinstein made headlines most recently last year when he along with billionaire investors Bill Ackman, Marc Lasry and Jeff Yass made a rival offer to buy Sculptor Capital Management after the company had agreed to sell itself to Rithm Capital.

Years ago Weinstein was one of a few hedge fund managers to profit from betting against credit positions taken by a J.P. Morgan trader known as the "London Whale."

(Reporting by Svea Herbst-Bayliss and Davide Barbuscia, Editing by William Maclean)