March monthly reports published
Equity markets rebounded and then started falling again in March and the general risk aversion pulled down interest rates. At the same time Federal Reserve hike interest rates again after very strong unemployment data, and communicated that the market may price too few hikes in the years to come. This resulted in flatter yield curves, not only in the US but in most large markets. In Europe “peripheral” markets like Spain, Italy, Portugal and even France saw a big rally in bond prices.
Excalibur, although biased toward rising yields, managed to gain from the flatter yield curves and being long European bond markets, but lost from the short position i Swedish rates. The monthly return ended at +0,47%. Trude was unfortunately even more biased towards rising yields, which took out gains in relative value trades during the month and they ended up -0,98%.
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