Investors Dust Off Trade That Protects Returns From Rising Rates
(Bloomberg) -- Central-bank bond buying has made it relatively painless for credit investors to switch to short-maturity debt to avoid risks from rising interest rates.Money managers at Amundi SA and Axa Investment Managers, which have combined holdings of $3 trillion, have been turning to a trade known as “curve positioning,” in which they switch out of long-dated debt and into similar notes with a shorter duration.“We have quite good visibility on corporate fundamentals. The main uncertainty is in rates,” said Gregoire Pesques, head of the global credit team at Am...