Sat, Feb 13, 2016
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. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  2. Asia - Hedge fund manager Kyle Bass estimates China's foreign reserves below critical level[more]

    From Nasdaq.com: Investor Kyle Bass stepped up his attack on China's currency, arguing in an investor letter distributed Wednesday that the second-largest economy's foreign reserves are "already below a critical level." The comments mark the latest effort by hedge funds and other investors to raise

  3. Investing - Some hedge funds want to make subprime auto loans next big short, 11 hedge funds that are “all in” on the FANG stocks, Hedge funds short London luxury homes, Cynet raises $7 million from U.S. hedge fund[more]

    Some hedge funds want to make subprime auto loans next big short From Bloomberg.com: A group of hedge funds, convinced they have found the next Big Short, are looking to bet against bonds backed by subprime auto loans. Good luck finding a bank willing to do the trade. Money manage

  4. Investing - Hedge funds see selloff in European bank stocks as buying opportunity[more]

    From WSJ.com: The massive selloff in European bank stocks and bonds is overdone and presents a “phenomenal” buying opportunity, according to some of Europe’s top hedge-fund managers. Despite a 28% slump in European bank stocks this year, including a 38% fall in Deutsche Bank AG and a 34% drop in Soc

  5. Legal - Carlyle accused of fraud by ex-employee, Hedge funds win CDS breach of contract suit against Deutsche Bank, Hedge fund asks for OK on $27.5m Goldman CDO deal, SFO examines Barclays hedge fund profits[more]

    Carlyle accused of fraud by ex-employee From AI-CIO.com: A former portfolio manager claims he was fired for blowing the whistle on “crazy” and “irresponsible” investments. Carlyle Group has been sued by a former portfolio manager for one of its hedge funds, who accused the firm of “knowi