Sat, Jan 31, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

2013 marks a rocky year for bonds, taper could add to the case for unconstrained funds

Thursday, December 19, 2013

Bailey McCann, Opalesque New York:

2013 has been a turbulent year for bond investors. Once rumors emerged in June that the Fed was going to start its taper program then, market participants got a glimpse into what fixed income investing might look like as rates rise - and it wasn't pretty. Six months later, when the Fed actually did announce that it would begin tapering while leaving rates low, market reactions were tempered. Still, investors that didn't take the hint in June will now have to plan for what happens with less stimulus. So far, it looks like investors have decided that in this new reality unconstrained bond funds are the way to go.

According to a recent Wall Street Journal article, inflows into unconstrained bond funds are up 30% over 2012, which is a notable shift. However, when you look under the hood of these funds, what each firm considers 'unconstrained' can vary widely. For some it means having a bigger cash position, for others the diversification in them is still highly correlated to indexes. Typically, a fund will say it's unconstrained when the managers can go both long and short bonds and invest across the landscape of fixed income opportunities. The way each fund slices up those options can make a big difference on performance.

Goldman Sachs has a product in this space that has seen record inflows of $9.8bn in th......................

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. Opalesque Exclusive: Ex-Citi trader launches 'sleep-at-night’ long/short equity fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: After working at Citi's proprietary trading desk, managing a large portfolio between 2008 and 2011, Joel S. Salomon founded SalaurMor Management in New Yor

  2. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  3. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  4. Update: Prosecutors seek 12 years for hedge fund manager Francisco Illarramendi[more]

    Komfie Manalo, Opalesque Asia: Federal prosecutors have asked the court to sentence convicted hedge fund manager Francisco Illarramendi to 12 years imprisonment for running an elaborate Ponzi scheme that bilked investors hundreds of millions in dollars, including a Venezuelan pension fund, report

  5. Institutions - Ontario pension fund leader calls all asset classes ‘expensive’, Taiwan's BLF plans $2bn in alternative mandates[more]

    Ontario pension fund leader calls all asset classes ‘expensive’ From WSJ.com: The head of one of the world’s largest pension funds said that across asset classes, “everything is expensive.” Ron Mock, who leads Canada’s $141 billion Ontario Teachers’ Pension Plan, said that the plan would