How an absolute return bond manager is negotiating 'dangerous' markets

Negotiating 'dangerous' markets

Grant Peterkin, co-manager of the Lombard Odier Absolute Return Bond fund, explains why investors should expect the current environment of negative yields to continue as central banks pursue their "race to the bottom".

He also tells Katrina Lloyd why he has avoided Greek debt in the fund and how he is playing lower oil prices through a short position in US high yield bonds. The $500m Lombard Odier Absolute Return Bond fund is a UCITS IV compliant vehicle, domiciled in Luxembourg. It has a target return of cash+3% over 12-month rolling periods and a volatility, or tracking error, target of around 4%. Peterkin joined Lombard Odier in March 2013. He was previously a senior portfolio manager in the rates team at Ignis Asset Management.