Retail Investors drive long end bond flows, institutions not so sure

HFA Padded
Mark Melin
Published on
Updated on

Managed futures CTAs have cooled on bonds, a JPMorgan asset allocation report notes, while something of note is occurring in duration. Emerging market bond flows are beginning to show life on the long end, with retail investors leading this charge. CTAs reduce bond shorts while mutual funds reduce bond longs CTA strategies, mostly statistically driven by past performance statistics with the near-term time horizon taking prescience in the formula over the far-away price movements, have migrated out of their bond shorts. JPMorgan’s Global Asset Allocation team, headed by Nikolaos Panigirtzoglou, note that CTAs are now near the flat line on…

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HFA Padded

Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.