Thu, Feb 11, 2016
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. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  2. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  3. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  4. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  5. Asia - Hedge fund manager Kyle Bass estimates China's foreign reserves below critical level[more]

    From Nasdaq.com: Investor Kyle Bass stepped up his attack on China's currency, arguing in an investor letter distributed Wednesday that the second-largest economy's foreign reserves are "already below a critical level." The comments mark the latest effort by hedge funds and other investors to raise