Arbitrage

In recent weeks, market conditions switched swiftly from panic mode to exuberance mode. Active investors are scratching their heads as markets no longer seem to be discounting a U.S. recession and any Fed rate hike in 2019.

The positioning of CTAs and Global Macro strategies on equities remains very cautious at present. Meanwhile, long Fixed Income positions have increased over the past few weeks. The stance has thus turned more defensive, even though the outlook on EM assets has turned more constructive.

To navigate such unstable conditions, there is a limited range of “all weather” strategies. Merger Arbitrage and Fixed Income Arbitrage (including L/S Credit) have demonstrated their ability to navigate such a difficult year like in 2018, when most asset classes delivered negative returns...

Nordea Asset Management announces the launch on 06 December 2018, the Nordea 1 – European Long/Short Equity Fund (‘the Fund”). The Fund is a liquid alternative strategy designed for investors searching for yields higher than traditional fixed income products, while at the same time seeking lower volatility than long-only equity funds.

Risk assets failed to reach a bottom early December despite the U.S and China agreeing to negotiate on trade at the G20 summit. The near-term outlook remains unclear from political uncertainties, which prevent investors from adding risk in portfolios despite lower equity valuations and wider credit spreads.