Oil’s Price Decline and its Impact on the High Yield Market

By Peter M. Lupoff,  Chief Investment Officer of Tiburon Capital Management, LLC   Existing angst about deteriorating credit quality, low absolute yields and increasingly lax covenants has been reinforced by fresh worries about the proximity of Federal Reserve rate hikes and the impact of last year’s dramatic decline in oil. The fact that energy and […] Read more »

Absolute Equity Team At Insight Investment Negatively Positioned

From Insight Investment Management (Global) Limited Comment from Andy Cawker, Head of Specialist Equities: “For the first time in a while we have a small negative beta position. There are various indicators that suggest we remain in an environment that favours high quality defensive stocks and those that can withstand falling markets, in spite of […] Read more »

Credit, Relative Value and Event Driven Strategies In Demand At GAM

GAM_2a online conversion

From Global Asset Management   Markets recovered their July losses, with the MSCI World index up 2.2% in August, while the reach for yield resumed with the Barclays US Aggregate Bond index rallying 1.1% and US high yield credit up 1.6% (IBOXX HY index). Hedge funds overall posted gains in August with the HFRX Global […] Read more »

Recent Setback In High Yield Was Technically Driven

By Dan Doyle, Portfolio Manager of Non-Investment Grade Credit at Neuberger Berman   The U.S. high yield market’s decline in July was its first setback in nearly a year. Could this be a sign of continued weakness or merely a correction? We believe continued strong fundamentals could point to a short-term sell-off and a fairly […] Read more »

Return of Your Capital over Return on Your Capital

By Lee Robinson, Altana Wealth Limited It is difficult to know where to start. 2013 is beginning to look like a pivotal year for so many regions globally. The bear is savaging each market in turn. First it was commodities then emerging market currencies followed by everything else in emerging markets. China is back to […] Read more »

Market Disruption and Smaller Flows to Credit Funds Anticipated

Bloomberg Trsy Page

By Manuel Arrive, Fitch France S.A.S., and Alastair Sewell, Fitch Ratings London Fitch Ratings expects credit markets to be less directional in the coming months. As a result, short duration, lower volatility and absolute return strategies with more performance contribution from bond picking will gain traction and are currently being launched by most advanced asset […] Read more »

Strategic Rethinking Required by European Asset Managers

By Fitch Ratings Paris/London (Aymeric Poizot, Roger Schneider, Richard Woodrow)   In a new report, Fitch Ratings says that European asset managers need to strategically review their product offerings and re-shape their activities by strengthening their key areas of expertise, scaling down or outsourcing others areas, and expanding in neighbouring activities while investing in new […] Read more »

Hedge Funds to Step Up In LBO Market in Europe

Just like the private equity business, Leveraged Buy Out (LBO) activity is usually subject to a cycle related to that of the stock market with a lag. On top of that in Europe there used to be laid a secular growth in LBO volume, and a long-term trend towards a wider variety of buy-out financing […] Read more »

Hedge Funds Positioning to Benefit from Euro Banks Spitting out Assets

“The Economist” (19th November 2011 edition) has just written about the market for assets being spat out of European banks. The article is reproduced below. For my part I see the market for leveraged loans in Europe becoming very attractive to buyers who know how to be selective, with, unlike the bank asset story, an […] Read more »