State Street Research Eyes Retail Floating Rate Fund

  • 18 Aug 2003
Email a colleague
Request a PDF

State Street Research & Management is considering bringing its floating-rate fund strategy to the retail level. The move is designed to protect investors against rising interest rates. State Street aims to capitalize on the solid track-record it has had with this offering on the institutional side, said Mark Marinella, chief investment officer, fixed-income. The Boston manager now offers the LIBOR Plus Strategy and Enhanced Cash portfolios to institutional clients. Indeed, many fixed-income managers are bracing themselves for the looming end of a long bond rally. A floating-rate strategy has been regarded as an effective hedge against rising interest rates, but only a handful of fund companies offer them directly to retail clients. In fact, there are almost no no-load shops who offer these types of investments, fixed-income managers said. "It's not that well known. You need someone, an advisor, to talk about it," said Payson Swaffield, v.p. and co-portfolio manager of the Eaton Vance Floating Rate Fund. Eaton Vance was among the first managers to peddle a floating-rate fund on the retail level. Swaffield said the fund has seen a year-to-date spike in assets, but declined to be more specific.

For State Street, the idea of introducing a floating rate fund to retail clients is a way to generate assets for its specialty products group, the $1 billion sub-division of its fixed-income practice, Marinella said. State Street sees the group as one of the growth engines of its fixed-income division.

  • 18 Aug 2003

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 14,443 29 18.07
2 Bank of America Merrill Lynch (BAML) 8,264 27 10.34
3 Lloyds Bank 7,329 24 9.17
4 Citi 6,748 19 8.44
5 JP Morgan 5,220 8 6.53

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 117,261.12 337 11.09%
2 Bank of America Merrill Lynch 94,723.52 272 8.96%
3 JPMorgan 92,612.23 269 8.76%
4 Wells Fargo Securities 82,597.19 239 7.82%
5 Credit Suisse 69,442.99 183 6.57%