After a good run many investors worry that the boom may be
Credit strategies may be growing increasingly
popular as a distinct investment genre, but a tough time for
many credit funds in May's markets has some wondering whether
their promise may have been a bit exaggerated. This was
especially true among convertible bond strategies that use
credit. So much so that in June, Goldman Sachs published a
second installment of a research series entitled "What is
Ailing the U.S. Convertible Market."
The Goldman Sach's Convertible Arbitrage Index lost 1.3% in
May, its worst monthly showing in five years. The dip left the
benchmark up by an equal 1.3% for the year, showing why
convertible funds, which are often long-only, haven't been
doing as well in 2004. It's worth noting that Goldman Sachs
analysts attributed the weaker showing to a summer sell-off of
converts, due to an array...