Some of the world’s top money managers are sitting on a windfall after the collapse of Silicon Valley Bank spurred the biggest rally in US Treasuries since the early 1980s.
Schroders Plc, Fidelity International and M&G Investments are among funds which initiated bullish bets on Treasuries before the failure of several US lenders forced a rethink of the Federal Reserve’s rate-hike path. Now they’re gearing up for even more gains as rising risks of a downturn fuel demand for havens.
“We prefer to now be positioning for recession,” said Kellie Wood, money manager at Schroders, who has bullish positions in two-year US government debt. “It’s hard to see Treasuries selling off too much from here.”
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