Strong performance lures hedge funds into agency paper

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By Lewis McLellan
09 Apr 2020

Hedge funds are showing up in greater numbers in order books for agency bonds, attracted by the strong performance and elevated spreads available in the SSA asset class.

“We’re used to seeing them in sovereign deals,” said an SSA syndicate banker. “But now they’re buying agencies too, the second tier names like BNG and NWB, etc. It’s thanks mainly to the fact the asset class has had such a good performance in the past few weeks.”

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