John Stover, Portfolio Manager of Tribeca Asia Credit Strategy, has just written to investors about the impact of rising bond yields, highlighting the asymmetry in 1-year returns for fixed income investments. He notes that the recent increase in yields can lead to substantial 12-month returns if yields drop by 100 basis points while protecting capital if yields rise by another 100 basis points. He also provides an analysis of the Tribeca Asia Credit Strategy, with an enviable 13.2% one-year total return if yields decrease by 100 basis points and an attractive return of 8.8% even if yields rise by another 100 basis points, due to its short duration and high coupon portfolio.
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John is the Portfolio Manager for the Tribeca Asia Credit Strategy, which pursues an actively managed long short approach to investing in the higher yielding part of the Asian credit market.