For hedge funds, the second half of 2023 is all about pouncing on the ways in which inflation, aggressive rate hikes and decarbonisation are shaping the economy.
Major central banks have collectively raised rates by more than 3,750 basis points since September 2021, and while the pace has eased, the world economy has yet to feel the full effect.
* Key trade: Long so-called "busted" convertible bonds, or hybrid securities where the stock trades below its option conversion price. At the time, these companies sporting high equity valuations and low bond coupons issued low to no coupon convertible bonds. Byron Gill, managing partner and portfolio manager at Indus Capital Partners, sees opportunities in Japanese companies benefiting from business-to-business inflation, where one firm passes on rising costs to another.
Andrea Seminara, founder and CIO at Redhedge Asset Management, believes bond markets underestimate how big a player the European Central Bank remains.The ECB is winding down its bond holdings but remains a big holder of euro area bonds. Seminara favored long positions in investment grade bonds and shorting high yield ones via the iTraxx Europe and iTraxx crossover indices.* Long and short stock positions on underfollowed securities* Trade idea: short weak entrants in the electric vehicle industry
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
July 4th 2023: Where to find festivals, parades and concerts in N.J. (June 29, 2023)Check out these July 4, 2023, events and festivals being held in New Jersey through July 4.
Read more »
July 4th fireworks 2023: Where to watch fireworks in N.J. (June 29, 2023)Check out this list of Fourth of July fireworks planned throughout New Jersey in 2023.
Read more »
Science News Briefs from around the World: July/August 2023Unlikely pollinators in Brazil, climate-resilient coffee in Uganda, credible cryptozoology down under, and more in this month’s Quick Hits
Read more »
Welcome to the 2023 Well+Good SPF AwardsThe “best” sunscreen is the one you’ll wear every day, and we’ve got 70 editor-tested, dermatologist-approved options to choose from.
Read more »
Miss Alabama 2023: Meet 42 women competing for this year’s crownForty-two women are hoping to become the new Miss Alabama this week, ranging from Miss Appalachian Valley to Miss Wallace State Community College. Let's meet this year’s contestants!
Read more »
The best and worst of 2023 (so far)From Succession's stellar finale to The Flash's rubbery cameos, here's what worked—and what didn't—in entertainment this year.
Read more »