Investment managers switching to liability benchmarks will have to turn to interest rate swaps, rather than long-dated bonds, to achieve the desired long tenors, according toDonald Brydon, chairman of AXA Investment Managers. Speaking at Euromoney's 12th Global Borrowers & Investors Forum in London last week, he said these skills are typically associated with the life assurance industry.
Anthony O'Brien, fixed income derivatives strategist at Barclays Capital in London, said, "All the dramatic flows have been in swaps rather than bonds, which tends to mean that is where the liquidity is."
