Credit’s secrets

Hedge funds are taking more and more notice of the European corporate bond markets. David Watts investigates the funds coming into the market and attempts to unravel thetypes of strategies they are employing.

Hedge funds are paying increasing attention to the European credit markets. Not only are traditional hedge funds now looking at the market for opportunities, dedicated corporate bond hedge funds are being set up and even well-known asset management companies are looking at the market.

Finding out exactly what hedge funds are doing is never easy; not surprising since they make their money from their secret strategies. Nevertheless, there are signs that hedge funds are becoming more