Sat, Oct 22, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Investing in credit remains strong despite interest rate talks

Friday, May 16, 2014

Bailey McCann, Opalesque New York:

Despite fears that investors would run from fixed income as interest rates rise, panelists at the SALT Conference currently underway in Las Vegas, Nevada are finding a wealth of opportunities in credit. Across several panels, managers agree that several years into the boom for credit funds, there is more to come.

Indeed, even though interest rates in the US are expected to start rising at some point in the next few years, other macro factors like recapitalizations in Europe and a lack of lending are likely to keep asset flows going into credit. The latest asset flows data from eVestment shows that credit fund AUM is at an all-time high. The universe surpassed its pre-crisis peaks back in 2010 and has been in record territory since.

Persistent growth has been driven by the structural shift in the industry’s investor base as institutions have overtaken FoFs as primary investors and shown an interest in alternative exposures to familiar markets.

The changing face of banks was a constant refrain among credit investors. Non-performing loans,and nonbank lending and specialty finance were cited as opportunities by Deepak Narula Founder & Managing Partner, Metacapital Management. "Refinancing is over," he added by way of explaining the slow down in residential mortgage refinancing.

More esoteric opportunities were also discussed including rep and warranty bonds. These bonds may be part of a litigation settlement that offers an ......................

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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. Macro hedge funds up 3.3% in one week on Fed and Brexit pays off[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were boosted by the strong performance of global macro funds, with the Lyxor Global Macro Index gaining 3.3% as of the week ending Oct. 11 (-1.7% YTD), Lyxor Asset Management reported. Their short on the p