Mon, Dec 5, 2016
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. M&A - AllianzGI to acquire Sound Harbor Partners, SS&C completes acquisition of Wells Fargo's Global Fund Services business[more]

    AllianzGI to acquire Sound Harbor Partners Allianz Global Investors (AllianzGI), an active investment manager, announced that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the te

  2. Europe - UK investors to pay more tax on money in offshore funds, Do you want to hand your money to super-algo or a Swiss banker?[more]

    UK investors to pay more tax on money in offshore funds From FT.com: Hedge funds in Dublin and Luxembourg are set to be hit by new rules that will force UK investors to pay more tax on the money they hold in offshore funds. As part of the government’s Autumn Statement on the country’s fi

  3. Hunt for yield pushes more investors into riskier assets[more]

    From FT.com: Pension funds and insurance companies have increasingly embraced riskier assets in their hunt for higher returns over the past five years. Alternative assets such as property, infrastructure, private equity and hedge funds have been bought up by institutional investors in a world where

  4. People - Nectar Financial hires senior investment team, Texas A&M replaces retiring foundation investment chief, Ex-Cadwalader partner Woolery makes another sudden exit, How to become a Python coder at a top hedge fund, by the co-CTO of Man AHL[more]

    Nectar Financial hires senior investment team Nectar Financial AG, a Swiss financial technology company for wealth and asset management, has announced that it has hired two key senior leaders to spearhead its digital asset management efforts. The company also announced that it has entere

  5. Activist News - Cognizant has introductory discussion with activist investor Elliott; to review letter, Starboard Value makes huge investment in Hewlett Packard, Hedge fund calls for removal of First NBC Bank CEO[more]

    Cognizant has introductory discussion with activist investor Elliott; to review letter From Indiatimes.com: Cognizant said it had an introductory discussion with Elliott Management after receiving the activist hedge fund's letter asking for a board shakeup, a buyback, a dividend and chan