WHEN: Today, Friday, December 11th
WHERE: CNBC's "Fast Money Halftime Report"
Following are excerpts from the unofficial transcript of a CNBC interview with Icahn Enterprises Chairman Carl Icahn on CNBC's "Fast Money Halftime Report" (M-F, 12PM-1PM ET) today, Friday, December 11th. Following are links to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000465313, http://video.cnbc.com/gallery/?video=3000465316, http://video.cnbc.com/gallery/?video=3000465319 and http://video.cnbc.com/gallery/?video=3000465320.
All references must be sourced to CNBC.
ICAHN ON THE HIGH YIELD MARKET
A high yield market is just a keg of dynamite that sooner or later will blow up. And I did say, and I said it to Larry, and I got respect for Larry, that Blackrock is a dangerous – the ETFs and Blackrock and these other companies are very dangerous because there is no liquidity behind these ETFs.
ICAHN ON THE SEC
I think the average person that goes into this should basically be warned and understand the danger. You're starting to see it manifest itself now. The SEC, like Icahn, sees danger. And there is danger because a lot of these companies – not just the energy companies, the other companies that really should have had to pay much higher interest rates, borrowed a great deal of money and I would like to know how they pay that back or how they even restructure the finances.
ICAHN ON TWEET
A high yield market is just a keg of dynamite that sooner or later will blow up. If you're buying these ETFs, these high-yield ETFs, well, you're going to have liquidity. And it's just beginning. It's a major problem, and the government, the SEC came out today and that is why I did the tweet.
ICAHN ON BEING OVERPRICED
The high yield market is tremendously in my mind overpriced. I'm not the only one saying it. A lot of intelligent people are said it in the last two months. Unfortunately, you have these instruments that – I'm not blaming anyone, I mean this is what companies do. They put these high yield funds out because you make a lot of money on them.
ICAHN ON RULES
I think it could be bad, but it could also be possibly stopped and averted. But I think the SEC – generally you don't like government intervention, but they should be, as they said yesterday, there should be rules about this stuff. There should be rules about how – you know, what you can buy and how you can buy it because people don't want the government involved too much. And I sort of agree, you don't want much intervention, but right here, there should be a lot of rules in what these guys are selling. And a lot of these companies shouldn't be borrowing the way they are at six times leverage. And companies that earnings are very suspect to begin with.
ICAHN ON HOUSING MARKET
It is analogous somewhat to the housing market when you had those terrible instruments – those securities. Like mortgage backed securities. In a way it is analogous. It's not as bad maybe – well in the energy it is this bad. Because those guys in many cases can't pay them. But now, here's what happens. So you think you have a fund. I mean, look, if you're a sophisticated bank that owned them, but those banks aren't even in the market anymore because, you know, the rules. So, then you understand what you have. But when you try to go sell that, it is going to be very difficult. And you know, I still think if you speak out enough and talk enough about it, you might be able to save the situation
ICAHN ON UNDERVALUED COMPANIES
From my point of view, I'm not buying it for a trade. I've told you this. Average company I own is 7 to 8 years. And so I'm not buying these because I think tomorrow they're going up or down. I think these companies are undervalued and in certain circumstances – and I'm not talking about any one of those you mentioned necessarily at this moment in time, but you may understand what I'm saying in the not too far future – that in many of these or in some of these, they're undervalued because of the management. And the CEO that's in there. And so that's one of the things. And the CEO is going the wrong way in certain ones and you may know what I'm talking about in the very near future.
ICAHN ON OIL
We sort of misread it, we didn't think it would be this bad. I don't think anybody thought it would be this bad because you obviously have the Middle East, Saudi Arabia just keep pumping and pumping and pumping oil. And that's a secular change that you can't do anything about. It's a political thing also. But yeah, I have to say and admit that while it hurts me day to day in marking my portfolio – as you mentioned before, so I'm talking against myself here – I think it will, it could very easily get worse. And eventually, I think it will get better, but it could get worse.
With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD , CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 371 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 15 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 7:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC at night features a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries.
CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms. These include CNBC.com, the online destination for global business; CNBC PRO, the premium, integrated desktop/mobile service that provides real-time global market data and live access to CNBC global programming; and a suite of CNBC Mobile products including the CNBC Real-Time iPhone and iPad Apps.
Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://www.nbcumv.com/mediavillage/networks/cnbc/.