5-Star Manager on GM, Bonds & More...

Five-star fund manager Steven Romick of First Pacific Advisors criticized the level of government intervention in General Motors .

“[The government] is not letting the capital markets be free,” Romick told CNBC at the Morningstar Investment Conference in Chicago.

He said his firm has been building “a lot of debt” in their portfolio over the last six months.

He said his firm owns debt of Ford Motor Credit in Europe.

Romick also said he is concerned about the rising Treasury interest rates.

“Americans are investing long on the asset side and we’re borrowing short,” he said. “43 percent of our existing Treasury debt comes due this year. So if you’ve got about $2.5 trillion debt that has to roll this year, plus including other deficits and stimulus, you’re at $4.5 trillion of your Treasury debt.”

(Watch the video for the full interview.)

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First Pacific Advisors serves as investment advisor to FPA Crescent Fund , which seeks value in corporate and convertible bonds.

Major holdings of the fund include:





American Capital


Walmart Stores


No immediate disclosure information was available for Romick or his firm.