Tue, Jan 24, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Taiwanese hedge fund managers look at short-term credit opportunities

Monday, March 19, 2012

From Precy Dumlao, Opalesque Asia – Participants in the latest AsianInvestor's institutional forum held in Taipei, Taiwan have found that Taiwanese hedge fund managers are abandoning their long strategies and looking at opportunities in short-term credit and other non-traditional bond strategies.

Vincent Wu, fixed income CIO for Fuh Hwa Securities Investment Trust told delegates at AsianInvestor’s 6th annual Taiwan Institutional Investment Forum that since the global financial crisis in 2008, Taiwanese fund managers have shifted from the "buy-and-hold" strategy to "buy-and-harvest" stance in keeping with the significant jump in bond fund turn over.

Wu released statistics that showed a drop from 0.7% to 0.3%, in the five-year Japanese government bond yields from 2002 to 2003 that resulted in a one-year capital gain of between 1 and 2%.

He told the delegates, "Last year there were massive fund flows into long-term emerging market debt, but this year the fund flows started to enter emerging market short-term debt and flatten the inverted yield curve. If you invested in short-term debt towards the end of last year you would have made a profit."

Wu also predicted that the one-year capital gain would be maintained below 2% should the U.S. Federal Reserve keeps its interest rates at its current low level until 2014.

In a relat......................

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. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised