Fund performance
A round-up of fund performance

EQT looks to raise €500 million via IPO
The initial public offering is anticipated to increase EQT's flexbility to “pursue growth opportunities” and expand its private market investing business

Credit traders' kickstand: Europe ascendant as high yield pipeline returns
The high yield bond primary market grinds back into gear this week just as European credit reaches an extreme point of outperformance over the US, and comes on the back of Europe’s busiest week of investment grade issuance in 18 months

Green bonds and international credit deliver double-digit returns for Swedish pension
Second Swedish National Pension Fund (AP2) reached SEK 367.4 billion in the first half of 2019, with investments in fixed income generating double-digit returns, according to its half year report  

Credit traders’ kickstand: it’s a tough time to go short
Credit derivative indices are ending the week back at very tight levels, with a re-convergence of spreads, with little appetite to bet against presumed central bank dovishness or the upcoming CDS rolls in September

Credit traders' kickstand: Basis and CDS curves take focus with long wait ahead for central bank direction
With almost a month to wait before the European Central Bank and US Federal Reserve hold their next decisive meetings, a bumpier and seemingly directionless road continues in credit markets as investors show little inclination to do anything more adventurous than just hold on tight

Credit traders' kickstand: volatility puts paid to primary, but pays out for relative value buyers
The persistence of credit market choppiness has brought into focus CDS/bond basis plays, options positioning, high yield dispersion and peripheral European weakness - but mainly the volatility rash has put a block on borrowers' primary market aspirations

Flat curves and decompression make waves below the surface
Hopes of using the summer slowdown to get to the beach may be tempered for credit relative value traders, where opportunities abound behind the uninspiring benchmark numbers of the slow market grind.

Net short language could force lenders to sell at a loss
Signs are growing that ‘net short’ provisions in bonds and loans are getting closer to hitting CDS investors, with two instances in recent weeks of the language expanding both in geographical and functional remit.

Back to basis (and skew) as relative value plays catch-up
Basis trades between bonds and CDS failed to gain traction during July as synthetic markets held ground or improved their position versus cash, but this is beginning to change, say market participants.

Fund performance: Mercury rises as does credit fund performance

Ucits at a glance: Amundi and Loomis Sayles funds register big gains in H1

Credit funds at a glance

Credit traders' kickstand: tighter and tighter we go, as outlook gets 'worse and worse'
It’s a strange world, where the president of the European Central Bank can say the economic outlook is “getting worse and worse” as credit markets surge into new territories of tightness

Investor requirements rather than performance is driving ESG push: Creditflux survey
Only 14% of respondents to Creditflux's global credit ESG survey said performance was the main reason they were adopting envoronmental, social and governance-themed strategies

Muzinich targets short-maturity bonds for new global IG credit fund
Muzinich & Co has raised €352 million for an investment grade credit Ucits fund on the back of what it describes as a “response to strong client demand”

CDS has spillover effect on bond liquidity but could cause fire sales, finds BoE researcher
Single name CDS positioning is positive for the bonds of borrowers referenced by the contracts through a ‘liquidity spillover effect’, according to a new paper by a Bank of England research economist. But mark-to-market losses on CDS brought about by higher margining costs could lead to fire sales in the bond market, the paper adds.

Credit traders’ kickstand: curve flatteners and skew trades gain ground
Grinding tighter is the order of the day in credit markets – and indeed looks likely to be the order for much of next week, with an absence of obvious events and catalysts to dictate otherwise. But the strength of the rally in CDS indices has left ‘catch up’ opportunities for relative value traders in curve, basis and even skew based strategies, say market participants

Tourists have turned high yield into a sketchier neighbourhood… IG credit could be the answer
Using CDS to exploit roll-down in IG credit can generate good returns even in a low-rate environment

Tranche trading is back: relative value plays power growth
Synthetic bespoke and index tranche markets are shifting through the gears and accelerating, say investors, as an increasing prevalence of relative value trading strategies evoke dreams of the products returning to pre-financial crisis glory.

Fund performance

Axa IM finds replacement for top fixed income role
Axa Investment Managers has appointed Christophe Herpet as global head of Axa fixed income and its buy and maintain division

Credit traders' kickstand: European financials outperform as Trump-Xi meeting looms
Credit markets are finely poised going into the weekend, when US president Donald Trump’s crunch G20 meeting with Chinese president Xi Jinping likely could set the direction of trade from Monday

Credit traders' kickstand: synthetic credit leads the way as spreads swoop on dovish wings
Dovish comments by the European Central Bank and US Federal Reserve, along with thin bond issuance, contributed to a pronounced rally this week in credit market. But a nervy week may lie ahead as suspense grows before G20 summit talks between the US and China next Friday and Saturday

Barclays rehires high yield credit trader from Goldman Sachs
A high yield specialist has become the second credit trader in as many months to rejoin Barclays from Goldman Sachs