Hedge Funds Are Slow to Come Back in Complex Credit Markets

Despite massive Fed intervention, some are still down double digits.

The Federal Reserve building in Washington, D.C. (Erin Scott/Bloomberg)

The Federal Reserve building in Washington, D.C.

(Erin Scott/Bloomberg)

When the pandemic roiled the markets in March, hedge funds investing in structured credit were among the hardest hit of any strategy — and they’re still struggling to make a comeback.

Despite massive intervention by the Federal Reserve in credit markets this year, these funds remain down between 7 percent and 20 percent, according to an investor in that area of the market.

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