Tue, Feb 9, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

As spreads tighten, hedge funds see opportunity

Friday, July 25, 2014

Bailey McCann, Opalesque New York:

Another wave of mid-year investor letters and performance updates have made their way to investors, and Opalesque inboxes. One theme has emerged within the credit managers space, which we have reported on steadily this week - as spreads tighten the opportunity set for these managers still seems ripe.

"Spread tightening has been consistent over the year," said Chris Acito, Gapstow Capital Partners CEO/CIO in a call for media today. "This has been especially true for longer durations."

Chenavari Investment Managers, Chenavari Toro fund is also continuing its steady climb posting a gain of slightly over 2% in June and over 18% year to date, according to an investor letter. In the letter, Chenavari echoed the thought that spreads have tightened, which makes economic recovery stories like the one in the UK more compelling.

Both men note that despite a common refrain about inflation and interest rate concerns, neither seem to be on the rise any time soon. "If you were long credit at the beginning of this year, things have been good," Acito said.

"We are relatively sanguine about the markets over the next six to twelve months. We expect to continue our interest in new issuance CLOs through the remainder of the year and into 2014. We also see a strong bid for legacy structured credit, CLOS and Trust preferred CDOs."

Chenavari noted that new mortgage und......................

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 - Avenue Capital's Marc Lasry: We like European bank loans, Comment: A bunch of hedge fund managers are chasing the 'dream of crushing a major structural problem'[more]

    Avenue Capital's Marc Lasry: We like European bank loans From CNBC.com: European banks are under immense pressure, but at least one prominent hedge fund has found what it thinks is a good opportunity in the wreckage. Marc Lasry, co-founder and chief executive of hedge fund Avenue Capital

  2. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  3. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  4. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  5. HFRU Hedge Fund Composite Index down -2.58% in January[more]

    Global financial markets posted sharp losses in January led by declines in Oil and global equities, though steep intra-month losses in both were narrowed by strong gains in final trading days of the month. Global equities posted steep declines for the month led by Biotechnology, Energy, Financial, E