Dow Jones – Hedge funds stormed back into U.S. fixed-income markets this year, research and consulting firm Greenwich Associates said Wednesday, as these strategies outperformed stocks and other participants in the markets retreated.
According to a survey of investors, Greenwich Associates said hedge funds now control about 20% of trading volume in the U.S. government bond market, from just 3% last year though still below a 2007 peak of around 30%. In corporate bonds and credit derivatives, they have a 26% share in trading volume, up from 16% in 2009.
