Sat, Aug 27, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Fixed Income remains hedge funds’ 2011 bright spot

Monday, July 11, 2011

amb
Vincent Deluard
From Kirsten Bischoff, Opalesque New York:

Fixed Income has seen steady inflows this year and remains one of the few bright spots amongst hedge fund strategies. In June performance, fixed income arbitrage is proving itself once again to have the best opportunity set in 2011. Notching returns of +2.38% YTD (Dow Jones Credit Suisse Fixed Income Arb Index). And, although the BarclayHedge Index for fixed income arbitrage registered almost flat in June (-0.12% with fewer than half of the funds reporting in as of yet), that index has registered even stronger YTD performance at +5.03%.

"Hedge fund managers may not like Treasuries, but our flow data shows that investors of all stripes are not shying from bonds," said Vincent Deluard, Executive Vice President at TrimTabs in a recent report by the firm. "Bond mutual funds, bond ETFs, and fixed income hedge funds continue to post sizable inflows." Bearish outlooks in US equities could also see additional fixed income inflows through the second half of the year.

In a recent overview anticipating opportunity in the third quarter, BlackRock’s Head of Fixed Income Peter Fisher says, "the market environment after the end of QE2 remains an unknown given the multiple significant global monetary crosscurrents, including the removal of massive Fed liquidity, the flood of liquidity from Japan, austerity measures in Europe and tightening policy in emerging markets." He also expects opportunities to continue, adding "At the sa......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new