Sun, Feb 26, 2017
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. Institutional investors plan to raise allocations to alternative assets in 2017[more]

    Komfie Manalo, Opalesque Asia: A survey by Context Summits Miami showed that nearly 72% of institutional investors and family offices plan to raise their allocations to alternative asset managers this year, suggesting continued strong demand for the industry. "As many large, brand name f

  2. Comment - Mortgages, mergers and hedge fund fees, Fairholme's Berkowitz responds to court ruling against hedge fund suits of Fannie Mae[more]

    Mortgages, mergers and hedge fund fees From Bloomberg.com: Yesterday the U.S. Court of Appeals for the D.C. Circuit handed down an odd decision in a lawsuit over the government's nationalization of Fannie Mae and Freddie Mac. The key issue is what's called the "Third Amendment," the 2012

  3. Investing - Hedge funds continue to chase the herd in record Momentum wager, Marshall Wace bets grocer Sainsbury may need rights offering, Hedge fund net exposure has started to retreat, David Tepper's Appaloosa fund makes a huge buy, The 10,000-mile journey to Short Australia, Skeptical hedge fund investors grill Evan Spiegel about Snap's I.P.O.[more]

    Hedge funds continue to chase the herd in record Momentum wager From Bloomberg.com: Hedge funds can't get enough of momentum - even if it means embracing an investing strategy they hate. Loosely defined as betting on shares that went up the fastest over the preceding nine-to-12 months, h

  4. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  5. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d