Wed, Sep 17, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Leading indicators suggest an end to the securitized credit bull run

Tuesday, October 08, 2013

Bailey McCann, Opalesque New York:

A new report from eVestment shows that securitized credit opportunities may be losing ground with investors as the opportunity set dwindles. Credit investments saw a flood of investor assets in recent years, but now managers and investors are having a hard time finding new pockets of opportunity signaling that it may be the end of the line for this particular story. The report looks at the state of hedge fund investment in securitized credit markets, including ABS, MBS, CDOs, and other asset-backed securities.

Fears over rising interest rates may have triggered the recent negative asset flows in both the traditional and alternative credit sector, signaling a possible inflection point in one of the most profitable segments for fund managers over the last several years. Since the financial crisis, investors have allocated nearly $26bn to securitized credit strategies, including $3.9bn in 2013, and the universe has produced average annual returns in excess of 25% making it one of the greatest runs for both investors and managers the hedge fund industry has produced in its history.

So far, those returns have continued unabated although maintaining this run may be difficult. According to data in the report, securitized credit funds (6.93%) outperformed both the hedge fund aggregate (4.33%) and the Barclays Capital U.S. MBS (-2.38%) on an absolute basis year-to-date through August. Volatility in those strategies was also low ......................

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 - Big hedge funds show interest in Alibaba, Maglan joins other hedge funds in rush to Argentinian assets[more]

    Big hedge funds show interest in Alibaba From Hereisthecity.com: …Three other major hedge fund investors who have shown interest in the IPO are Dan Loeb of Third Point, David Tepper of Appaloosa Management and Dan Benton of Andor Capital Management. All three were among the roughly 800 p

  2. Investors looking at other sources for hedge fund-like returns[more]

    Komfie Manalo, Opalesque Asia: Investors who are always on the lookout for higher gains are looking at alternative sources of income, particularly exchange-traded fund industry that generates hedge fund-like returns, according to

  3. Investors move capital out of Scotland ahead of referendum[more]

    Benedicte Gravrand, Opalesque Geneva: Ahead of Scotland’s independence referendum on September 18, asset managers, investors and pension savers are moving billions of pounds out of the country,

  4. Indices - Greenwich Global Hedge Fund Index up 1.57% in August (+4.22% YTD), Eurekahedge Hedge Fund Index rebounds in August gaining 1.36% (4.22%), Lyxor Hedge Fund Index was up 0.9% in August (YTD +1.7%)[more]

    Greenwich Global Hedge Fund Index up 1.57% in August (+4.22% YTD) The Greenwich Global Hedge Fund Index ended the month of August up +1.57%. Equity markets were up in August with the MSCI World Index up +2.00%. This was primarily driven by the performance of the S&P 500 which was up +4.

  5. Alpha Strategic buys stake in Premium Point Investments[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Alpha Strategic plc, a affiliate of