Tue, Jun 30, 2026
A A A
Welcome Guest
Free Trial RSS pod
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

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Nvidia extraordinary growth and the challenge of sustaining demanding valuations over time[more]

    Antonio Di Giacomo, Senior Market Analyst at XS.com, writes: Nvidia has established itself as one of the most extraordinary growth companies in the global technology sector. Over the past two fiscal years, its revenues have risen from levels close to $60 billion annually to well above $120 billi

  2. Secondaries take center stage: What the 2026 PE landscape means for GPs and investors[more]

    Matthias Knab, Opalesque for New Managers: The 2026 edition of Dechert's Global Private Equity Outlook - "Signs of a Gradual Thaw" - marks a notable shift in industry sentiment. After years of compr

  3. And, finally: Time to share it with the people[more]

    From Newsoftheweird: Leavenworth, Washington, has become a tourist destination because of the Bavarian theme businesses have adopted there, NPR reported. One shop, the Leavenworth Nutcracker Museum, houses the world's largest nutcracker collection, thanks to 101-year-old Arlene Wagner. Wagner sta

  4. Opalesque Exclusive: Private Markets Evergreen Funds - An Insider's View[more]

    Matthias Knab, Opalesque for New Managers: Private Markets Evergreen Funds: What Investors Need to Know Before They Dive In The democratization of private markets is well underway. Structural barriers t

  5. Opalesque Exclusive: Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry[more]

    Matthias Knab, Opalesque for New Managers: The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique m