Soaring government debt supply and a massive reduction in bank prop trading and other forms of risk capital have transformed the opportunity set for the remaining players in the fixed-income RV space
Fixed-income arbitrage is back on investors' radar screens in a big way, at a time of un-precedented government debt supply, rock-bottom interest rates, a significant spike in bond market volatility and massive fiscal and monetary stimulus programmes in the major economies.
The Sanctum team
Long-time fixed-income relative value player Sanctum has been quick to take advantage of the dramatic change in the opportunity set. This is especially visible in the US bond market, the firm's primary area of focus, as well as in investor sentiment towards the strategy -after several years of low returns - interspersed with occasional and spectacular blow-ups.
Led by experienced bond trader Antony Mayhew and former Lehman fixed-income sales specialist Jeremy Corn, the London-based Sanctum...