Despite some bad numbers in July, managers are confident
about the future saying that the turbulence has thrown up some
Following July's fun and games in the U.S. bond market, a
number of investors are beginning to ask themselves if the long
running bull market in bonds has finally come to a juddering
halt. Already there are signs that smart managers are shifting
their focus away from traditional fixed income arbitrage
towards credit, high yield and directional strategies.
For the time being, however, most are simply grateful that
they survived the turbulent conditions in July, which was one
of the trickiest months on record. The U.S. yield curve bungee
jumped its way through July, intraday trading volatility was
huge and weekly moves in U.S. swap spreads and implied
volatility were three standard deviations away from their
The Treasury sub-component of the JPM global...