Babson Eyes Debt To Boost Returns

Jan 18 2012 | 11:13am ET

Babson Capital Management finds itself drawn inexorably to credit markets, an inclination it has no plans to deny.

The MassMutual subsidiary plans to increase its multi-strategy fund's exposure to debt, fund manager William Awad said. The five-year-old fund will invest between 5% and 10% of its assets in credit.

"If you look at debt spreads versus equities, debt spreads seem attractive now compared to historical averages," Awad told HFMWeek.

Which is not to say that Babson is abandoning stocks. To the contrary, the firm plans to team with sister MassMutual affiliate Baring Asset Management to co-manage the portfolio.


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note