Credit

ZENCAP Asset Management, an affiliate of the OFI Group, will offer a private-debt type opportunistic approach which allows investors optimised access to distressed and credit assets.

According to Ian Edmonds, manager of the Legg Mason Western Asset Global Multi Strategy Bond Fund, falling default rates, increased M&A activity and surging supply should drive strong returns in the high yield corporate bond market in 2011.

While complex finance should be preferred to improve risk modeling, it continues, in times of market stress, to help designing unmanageable and useless complex structured products

If Greece is allowed to default now, the risk of a confidence crisis and contagion is substantial. The debt of other weak eurozone countries may fall victim to speculators and the market for credit default swaps could experience difficulties again

While the markets feel risky, the perceived risk has not been matched by a spike in market levels of implied volatility