Warning sounded on credit fund concentration risks
Allocations to funds based on corporate bond indexes raise issues that investors seem unaware of, such as US high yield's correlation to the oil price, according to new research.
The downsides of investing based on traditional market cap-based equity indexes are well documented, but many investors do not realise that credit markets face similar issues, said Raphael Thuin, fixed income portfolio manager at Tobam, a Paris-based smart-beta fund house.
Sign In to Your Account
Access Exclusive AsianInvestor Content!
Please sign in to your subscription to unlock full access to our premium AI resources.
Free Registration & 7-Day Trial
Register now to enjoy a 7-day free trial—no registration fees required. Click the link to get started.
Note: This free trial is a one-time offer.
¬ Haymarket Media Limited. All rights reserved.