Thu, Feb 11, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund managers see short-term volatility, long-term opportunities in European credit

Friday, October 28, 2011
Opalesque Industry Update - Credit Suisse’s Asset Management division today announced the release of the fourth quarter 2011 edition of its “Asset Management Alternatives Quarterly.” This thought-leadership series, which includes a white paper and video, offers insights from Credit Suisse Asset Management’s CIO Office and leading alternatives portfolio managers on global economic trends and capital markets.

In this edition, Credit Suisse Asset Management’s CIO Office discusses the drivers of recent volatility in world capital markets, including poor macroeconomic data from developed economies and continued uncertainty over the Eurozone sovereign debt crisis.

Emerging markets were also affected by developed markets’ slowing growth in the third quarter, as investors shied away from risk, generating further volatility. According to the white paper, however, emerging market economies remain fundamentally healthy, as evidenced by still robust growth rates and low debt ratios. In addition, receding inflation worries should enable emerging economies – such as China – to shift its focus from fighting inflation to bolstering economic growth.

Other key themes in the Q4 2011 issue include:

  • Event driven and relative value hedge fund managers believe that while the short-term environment remains volatile, in the long run, opportunities in credit may be developing in Europe. Future potential recapitalization of the financial sector and further deleveraging of the corporate debt sector may point to multi-year, credit-related investment opportunities across many sectors. 
  • The Credit Investment Group remains cautious with regard to the broader asset class in the near term. As such, they are defensive from a portfolio management perspective, emphasizing senior- secured bonds and overweighting higher-rated bonds with potentially superior risk-return profiles. 
  • Current market volatility and increasing corporate cash balance sheets may present an opportunity for private equity managers, particularly for those focused on special situation and Euro distress- for-control strategies. 
  • The Commodities Group believes that despite the volatility in capital and commodity markets, long- term fundamentals (i.e., tightening supply) for select commodities, such as agriculture, industrial metals and energy, remain positive. Press release: Source
- FG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. 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

  2. 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

  3. 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

  4. 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

  5. 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