{"id":12995,"date":"2009-11-16T11:21:49","date_gmt":"2009-11-16T15:21:49","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=12995"},"modified":"2009-11-16T11:22:30","modified_gmt":"2009-11-16T15:22:30","slug":"bond-fund-managers-beginning-to-lock-in-yearly-gains","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/11\/2009\/bond-fund-managers-beginning-to-lock-in-yearly-gains.html","title":{"rendered":"Bond Fund Managers Beginning to Lock in Yearly Gains"},"content":{"rendered":"<p>New York (HedgeCo.net) \u2013 According to an article in last week&#8217;s <a href=\"http:\/\/online.wsj.com\/article\/SB10001424052748704576204574529821510915810.html\">Wall Street Journal<\/a>, a sizable contingent of bond fund managers are taking advantage of this year&#8217;s robust market for debt securities by locking in yearly gains, content to wait until January to seek out any new opportunities.  <\/p>\n<p>In particular, managers of funds investing in riskier debt, such as junk bonds, asset-backed securities, and leveraged loans have spearheaded the trend.  Given the elevated level of risk associated with these strategies, many managers appear satisfied to let year-to-date returns speak for themselves.  As of November 10, junk bonds have returned 52.38% year-to-date, while asset-backed securities have posted a 24.69% return.  Additionally, leveraged loans have returned 48.5% on average.  Concedes Chris Munck, a trader at B. Riley &#038; Co., &#8220;We have had a hell of a rally here. I can&#8217;t imagine there is any more upside.&#8221; <\/p>\n<p>This theme reflects one of the investment community&#8217;s headline trends of 2009, the return to risk.  For the opportunistic hedge fund or money manager, the end of 2008 presented a tremendous buying opportunity.  While a significant number of funds unloaded assets in order to meet investor redemptions, purchasers were able to scoop up assets, especially less-liquid debt instruments, considerably cheaply.  <\/p>\n<p>Meanwhile, with the backing of a fresh string of government programs, including the Term Asset-Backed Liquidity Facility and the Federal Reserve Bank&#8217;s purchases of Treasury and mortgage bonds, these assets have recovered their values quite quickly, rewarding opportunistic buyers as the demand-and with it, prices- for such securities has risen. <\/p>\n<p>Dave Wormus<br \/>\nContributing Writer, HedgeCo.net<br \/>\nnews@hedgeco.net<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.net) \u2013 According to an article in last week&#8217;s Wall Street Journal, a sizable contingent of bond fund managers are taking advantage of this year&#8217;s robust market for debt securities by locking in yearly gains, content to wait [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[4309,3004,5125,16010,16011],"class_list":["post-12995","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news","tag-asset-backed-securities","tag-bonds","tag-federal-reserve-bank","tag-junck-bonds","tag-managers"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/12995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=12995"}],"version-history":[{"count":2,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/12995\/revisions"}],"predecessor-version":[{"id":12997,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/12995\/revisions\/12997"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=12995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=12995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=12995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}