Chart of the month: SPM on upward trajectory


Structured Portfolio Management's $750 million Structured Service Holdings Master Fund continued its steep climb in July, returning an estimated 5.5% for the month. That gain puts the fund up 25.2% for the year. By comparison, the Absolute Return Mortgage-Backed Securities Index inched up 0.20% for the month, bringing its year-to-date return to 3.43%.

The master fund's gains came primarily from the continued slowdown in prepayments on its interest-only portfolio as well as widening mortgage spreads. The fund also benefited from steepening yield and swap curves.

SPM was founded in 1997 and manages $1.5 billion in assets. The master fund,