Alvine Capital and SEB Enskilda Credit Seminar, 28th November

Alvine Capital and SEB Enskilda Capital Introduction hosted a Credit Seminar on the 28th November at the Mansion House in London.

The seminar navigated investors through the landscape of absolute return credit strategies, and how that can fit into an investment portfolio.

The seminar started with an asset allocation presentation from Torbjörn Hamnmark, a senior strategist at the Third Swedish National Pension Fund (AP3). Torbjörn explained how AP3 is moving away from a traditional asset allocation approach in favour of different risk classes. AP3 has taken a ‘barbell’ approach to credit and invested in Swedish government bonds, high-yield bonds and infrastructure assets.

Ian Winship, a managing Director at BlackRock Absolute Return Bond Fund followed Mr. Hamnmarks’ presentation looking at allocation within fixed income. Ian discussed how BlackRock is looking at highly diversified sources of return and ensuring risk management is at the core of the investment process.

Following the presentations, a panel discussion was held on credit strategies discussing the opportunity set for credit markets.

The debate was moderated by Thomas Raber, managing director and founder of Alvine Capital and Eric Hoh, head of alternatives, trading and capital Markets at SEB. The panel consisted of three members from the hedge fund community; Theo Phanos from CapeView Capital, Michael Falken from Brummer & Partners and Jeffrey Peskind from Phoenix Investments Adviser. The debate was driven by questions from Mr. Hoh and from the over 120 guests who attended. Jeffrey Peskind outlined his optimism for credit picking strategies enhanced by how little dealer inventory was now possible.

To summarise the seminar:

-Credit funds still offer great investment opportunities despite recent inflows and tightening of spreads

-Security selection is key

-Low interest rates are enhancing the overall appeal of credit