Chart of the month:


MKP Credit Offshore Ltd

MKP Credit Offshore Ltd. Fund has outperformed the Absolute Return Mortgage-backed securities index over the last 24 months. The fund delivered a 2.05% return for January and has realized an annualized return of 13.75%.

The fund had a strong month due to yield spreads compressing in the commercial mortgage securities sector. Likewise, yield spreads in the residential positions narrowed, helping returns.

The fund, which is currently closed, invests in credit sensitive mortgage-backed securities and is backed by pools of residential and commercial mortgages, in addition to selected asset-backed securities.