Thu, Jul 24, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Opportunity to extract alpha from structured credit 'now much more difficult'

Friday, April 11, 2014

amb
Fernando Guerrero
Benedicte Gravrand, Opalesque Geneva for New Managers:

Structured credit went out of fashion in 2008, then back again four years later. The asset class still offers attractive rewards for the bold, yet sagacious investor. A hedge fund manager with 27 years of experience in structured finance gives his perspective.

The term "structured credit" either frightens or excites depending on whether an investor is reflecting on the first couple years of the most recent financial crisis or looking forward to this year, wrote PIMCO, the biggest bond fund house (now with around $1.9tln in Aum), in early 2012. The firm went on to say that structured credit products had again attractive risk adjusted return potential as pricing reflected a more realistic view of the underlying fundamentals. That same month, Investcorp, a manager of alternative investment products with $10.5bn in AuM, had their own report saying, "We believe that notwithstanding the weak economy, there is a compelling multi-year investment opportunity for hedge funds that specialize in structured credit." Structured credit offers the steady stream of interest payments that are now in high demand thanks to the Fed’s monetary policy,......................

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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  3. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  4. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  5. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag