Credit hedge funds (October 2022)
Credit hedge fund returns

   

Dispersion picks up as candidates for distress emerge
Dispersion will be a concern for all parts of the global credit market in the fourth quarter, say traders who are focused on relative value

51% of investors plan to increase loan allocation in next 12 months: State Street survey
State Street surveyed 700 global institutional investors  on how they view the fixed income market and how they are allocating amid ongoing market volatility.

U-turns abound as markets pivot sharply on government and central bank rethinks
A big rally in financial markets on Tuesday has driven credit spreads sharply tighter, with a softening outlook for central bank actions building on relief that the UK government has opted to U-turn on its poorly received high bracket tax cut plan

LP round up: $2.7bn flows to 20 credit managers as investors battle PE overallocation
Investors faced huge headwinds in September with inflation, rising interest rates, and geopolitical turmoil, alongside the UK gilts sell-off at month end

Credit Suisse blow out puts financials in spotlight
Credit spreads have pushed wider on Monday, with underperformance in investment grade, as sharp oil price moves accompanied intensified focus on the banking sector amid a slew of worrying commentary on Credit Suisse

"Ugly" eurozone inflation numbers cap off torrid week for credit
Credit spreads are heading tighter into the weekend, as investors rebalance positions against a backdrop of easing currency pressures but a challenging array of European inflation numbers and a highly charged Brazilian election month about to kick off

Investors nurse wounds after UK scuppers credit expectations
Financial markets are picking up the pieces on Thursday following an extremely volatile session ignited in large part by UK economic mishap, which sparked fears of a financial crisis and necessitated the central bank’s intervention

GoldenTree hits $3bn hard cap on distressed debt fund
GoldenTree Asset Management says it has closed its latest distressed debt fund, Distressed Fund IV, at its $3 billion hard cap

UK and Italy in focus as credit rout extends
UK and Italy sovereign credit spreads are heading wider on Wednesday, as the market-wide sell-off takes indices to new extremes for the year

So long! US high yield index jumps tighter with roll from old to new series
Credit spreads have retraced tighter on Tuesday, after two days of heavy selling pressure, as investors in US high yield index CDX HY get set for its roll into a new series

European credit returns to peak covid levels with UK getting pounded
What looks set to be another challenging week for financial markets has opened as bearishly as last week ended, with credit spreads in Asia and Europe once again surging to new wides

Surge in hedging sends credit spreads to year's wides
A busy and bearish week is ending with credit spreads surging beyond their previous widest levels of the year, with Italian elections this weekend adding to caution in Europe after a string of central bank policy decisions reshaped the global economic outlook and the UK government scrambled to address rising energy costs

Bruises start to swell, despite BoE pulling its punch
Market mood is growing uglier as the week progresses, with global investors increasingly looking for safety as the impact of central bank interventions combines with escalating fear over Russia’s campaign against Ukraine

Powell moves set to surpass power moves as credit spreads head wider
Hedging has been a prominent feature of financial markets ahead of Wednesday’s hotly anticipated US Federal Reserve statements, but Russia’s move to escalate its war efforts in Ukraine has injected another layer of uncertainty

Nomura readies multi-strat credit interval fund launch
Nomura Private Capital is readying the launch of a new, closed-ended interval fund which will invest across the credit spectrum - including bonds, loans, CLOs, distressed debt emerging market debt

Big push wider for credit index spreads as traders navigate challenging roll
The roll of CDX and iTraxx credit indices is proceeding, with traders scrambling to respond to a big shift in relative dynamics between the US and Europe following London's long weekend

US-led sell off shifts index roll technicals with key rates decisions looming
Further deterioration in global economic outlook is causing credit spreads to move back to the midpoint or wide end of their recent range, after a week of reversal from the previously more optimistic September trading run

Euro credit hits new tights against US after months of underperformance
The gap between European and US credit has closed, with indices trading at their tightest relationship for several months, after US economic data introduced a fresh bout of volatility

Structured credit cited by 42% of investors looking for fixed income replacement, Aeon finds
Institutional investors are largely looking to reallocate away from the fixed income market amid the macro-environment of rising interest rates, inflation and poor returns, according to a survey by Aeon

Macquarie taps former Alcentra official to lead global private credit and asset finance
Macquarie Asset Management has appointed former Alcentra European direct lending head to lead its global private credit and asset finacne business

LP round up: Magnetar and Värde among winners as $3 billion flows to credit
Institutional investors allocated at least $3 billion to credit funds in August

Spreads trace worryingly familiar arc as investors take good news as bad and bad new worse
Credit spreads are pushing ever closer towards the year’s peak levels, continuing Wednesday a sell off that began on Tuesday, with positive US economic data perversely sparking a bearish shift in financial assets that negative European data has since compounded

MetLife set to buy impact bond specialist AIM
MetLife Investment Management has struck a deal to buy fixed income ESG specialist Affirmative Investment Management

Russia and Ukraine debt recovery outlooks diverge as DC publishes auction lists
The credit event auction to settle Russian sovereign CDS will have eight bonds deliverable, while 15 bonds have made it onto a preliminary list for Ukraine’s auction