Wed, May 4, 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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n