Today we are profiling a CTA that is new to the IASG database: Sandpiper Asset Management. The Sandpiper Global Macro Program is a multi-strategy program employing systematic trend following and discretionary trading methods across 50 liquid futures markets. The Program produces returns across a wide range of economic cycles and exhibits a negligible correlation to other investable assets. Risk is managed […]
One of the biggest surprises this year has been the sharp decline in long term interest rates despite the Federal Reserve’s monthly removal of $10 billion in bond purchases to gradually reduce quantitative easing. Numerous market commentators have put forth explanations for the rate decline, touching on short covering, limited supply, economic woes, weather etc. A factor which has only been partly discussed is the correlation between European rates and US rates, especially the link between the German Bund and the US 10- year Treasury. These two have been loosely tethered to one another for more than 25 years. In the last sovereign debt crisis during the summer of 2012 Italian and Spanish long term rates stood at 7%, and have since dramatically declined, ending last year yielding 4.1%.