State Street Global Advisors plans on launching its first actively managed absolute return mortgage strategy. Jim Hopkins, principal at the Boston-based bond buyer, said State Street is planning to implement the strategy on behalf of an investor client, whom he declined to name. "People are more willing to take on more risk; we're in more of a greed environment than a fear environment," Hopkins said, explaining why there is demand for a more leveraged strategy now.
Hopkins declined to discuss further details about the strategy given it has not yet been approved by State Street's product development committee, although he said approval is expected in the coming weeks. More information on what the strategy will entail could not be determined by press time.