Tuesday, 29 July 2014
Last updated 1 hour ago
Apr 20 2012 | 2:24am ET
The Man Group's year-old Systematic Strategies unit is readying a quantitative sovereign debt hedge fund.
The Man Systematic Fixed Income Fund will be Systematic Strategies' fourth—a quantitative commodities fund was launched last month. The unit is still working on the strategy and Man declined to project a launch date, Reuters reports.
The new fund will seek out dislocations in government bond markets, hoping to attract investors who agree with MSS's bleak outlook for the asset class.
"Traditional fixed-income investing [is] unattractive," MSS wrote in a note. Among the problems are "yields close to zero percent, increased credit risk in many government bonds," and "little upside [and] big downside of being long bonds in [the] current environment."
But, MSS says, "market inefficiencies [are] likely to prevail in fixed-income markets, creating investment opportunities."
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…