Wed, Jun 29, 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. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  2. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  3. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  4. Visium hedge fund manager Sanjay Valvani found dead[more]

    Benedicte Gravrand, Opalesque London: A hedge fund manager connected with an insider trading case has apparently committed suicide. Sanjay Valvani, 44, a hedge fund manager at New York-based Visium Asset Management, was found dead in an apparent suicide on 21 June in his Brooklyn residence,

  5. People - Mariner Investment’s co-CIO Williams to leave $5.5bn firm, IOOF hires new alternatives portfolio manager[more]

    Mariner Investment’s co-CIO Williams to leave $5.5bn firm From Bloomberg.com: Basil Williams, co-chief investment officer of Mariner Investment Group, is leaving the $5.5 billion hedge-fund firm after negotiations to renew his contract failed. Williams will stay in his role until t