Fri, Aug 22, 2014
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. Institutions – Texas Employees sets 2015 tactical plan for alternatives, CalPERS' real estate consultant cautions the pension fund's investment committee, Why Sunsuper likes hedge funds[more]

    Texas Employees sets 2015 tactical plan for alternatives From PIOnline.com: Texas Employees Retirement System will invest in up to four new hedge funds in the next fiscal year, which begins Sept. 1. Trustees approved 2015 tactical investment plans for the hedge fund, private equity and in

  2. Private equity follows hedge funds into reinsurance for long-term capital[more]

    From Artemis.bm: It’s not just hedge funds that are entering the insurance and reinsurance market in search of so-called long-term capital to put to work in their strategies, private equity firms targeting the space are also seeking opportunities to add assets under management. The entry of large pr

  3. North America – New York City’s next hot neighborhoods targeted with property funds[more]

    From Bloomberg.com: New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. and hedge

  4. Investing – George Soros bets $2bn on stock market collapse, Warren Buffett's Berkshire reveals Charter stake, cuts DirecTV, Hedge funds lusting to cash out of MGM, Top hedge fund managers are buying Ally Financial, Hedge funds dumped 5m Herbalife shares in Q2, Paulson & Co hedge fund ups Puerto Rico real estate bet, Netflix Inc., Citigroup Inc, Google Inc are top new picks in Tiger Management’s 13F[more]

    George Soros bets $2bn on stock market collapse From Newsmax.com: Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion. The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Inde

  5. Investors now net short S&P500 and increased Russell shorts, technicals suggest further selling[more]

    Komfie Manalo, Opalesque Asia: Market Neutral funds increased their market exposure to -1% net short from -6% net short last week, according to Bank of America Merrill Lynch’s Hedge Fund Monitor. The report also added