Tue, Feb 21, 2017
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. With $54bn in assets, Philippines is ready for hedge funds, alternative investment products[more]

    Komfie Manalo, Opalesque Asia: With the country's outstanding fund management industry at $54bn and growing, the Philippine market and its investors are ready to invest in "more sophisticated" asset management products, like hedge funds and alternative investments, said Deanno J. Basas, presi

  2. SoftBank to buy Fortress Investment for $3.3bn[more]

    From Reuters.com: Japan's SoftBank Group Corp on Wednesday said it has agreed to buy Fortress Investment Group LLC for about $3.3 billion, looking to add investment expertise as it prepares to launch the world's largest private equity fund. The all-cash deal is SoftBank's first major investmen

  3. ...And Finally - Truth in advertising[more]

    From Newsoftheweird.com: Girl Scout Charlotte McCourt, 11, of South Orange, New Jersey, saw her sales zoom recently when she posted "brutally honest" reviews of the Scouts' cookies she was selling -- giving none of them a "10" and labeling some with dour descriptions. She was hoping to sell

  4. Europe - Brexit - Updated legal guide, Euro exchange rates set to tumble as hedge fund's super computer predicts Marine Le Pen will be next French president, Swiss fund market hits all-time high[more]

    Brexit - Updated legal guide From Herbertsmithfreehills.com: When we began analysing in depth the possibility of Britain exiting the EU (Brexit), 18 months prior to the June 2016 referendum, the business consensus was very much that Brexit was a remote prospect that either would never hap

  5. People - Gramercy appoints Bradshaw McKee as managing director of Capital Solutions, Trump taps Cerberus's Feinberg to lead intelligence review[more]

    Gramercy appoints Bradshaw McKee as managing director of Capital Solutions Gramercy Funds Management LLC, a $5.8 billion dedicated emerging markets investment manager, today announced the appointment of Bradshaw McKee to the position of Managing Director, Capital Solutions and Distressed