Thu, Sep 3, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Alternative credit strategies can offer appealing returns if handled cleverly

Tuesday, February 04, 2014

Benedicte Gravrand, Opalesque Geneva:

Interest rate and credit risk premiums are at record-low levels due to the macroeconomic environment and the global reach for yield. Furthermore, the sell-off in fixed income that took place last summer could lead to a more volatile fixed income and credit market environment in the future. Traditional fixed income investing has become unattractive. So what can be done within fixed income? The best way to go about it, argues a recent White Paper from Gottex, the Swiss fund of funds manager, is to implement an investment strategy that seeks to reduce the beta to traditional risk factors and makes sure its liquidity is able to withstand or even exploit short-term price volatility. And such "alternative credit strategies" are available in the market today.

According to the authors of the paper (A case for alternative credit strategies, Jan.14), Edward Russell, head of fixed income strategies and Philipp Rieder, senior credit analyst, alternative credit strategies "can harness the entirety of the global credit markets, but focus on the following sectors: leveraged corporate credit, structured corporate credit, synthetic corporate credit, distressed corporate credit, agency and non-agency residential and commercial mortgage-backed securities (RMBS and CMBS), non-mortgage asset-backed securities (ABS), collateralized loan obligations (CLO), and collateralized debt obligations (CDO)."

There are several interesting alternative credit str......................

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. Cliff Asness attracts $360 million as liquid alternative funds hold up[more]

    From Bloomberg.com: As U.S. stocks suffered their worst month in more than three years in August, Clifford Asness’s managed futures fund was able to profit. Investors are taking notice. The $9.12 billion AQR Managed Futures Strategy Fund pulled in an estimated $360 million in net subscriptions last

  2. Performance - Einhorn and Loeb's hedge funds both decline 5% in August, Some target-date funds miss in the market turmoil[more]

    Einhorn and Loeb's hedge funds both decline 5% in August From Reuters.com: Hedge fund billionaires David Einhorn and Daniel Loeb saw their main funds lose roughly 5 percent in August during a dramatic market sell off, two people familiar with their returns said on Monday. Einhorn's

  3. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  4. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

  5. North America - Puerto Rico agency plans talks with hedge fund creditors[more]

    From WSJ.com: Puerto Rico’s Government Development Bank is planning to begin confidential debt-restructuring talks with hedge funds that own its bonds as early as next week, said a person familiar with the matter. The parties are set to discuss a plan under which the investors would lend additional

 

banner