Assenagon Looks To Isolate Credit Risk From Rate Risk Into 2014

Assenagon Asset Management is using interest rate swaps to isolate credit risk from rate risk after rate uncertainty was exacerbated by the European Central Bank’s decision to slash rates to a low of 0.25% last week. Rates risk looks set to increase into 2014 with no firm decision yet from the U.S. Federal Government on when it will begin tapering its bond buying program.