FOR PROFESSIONAL INVESTORS

Absolute Return Fixed Income: What It Is, How It Works, and Who It Is For Alex Johnson, Head of Absolute Return Multi-Sector Fixed Income Q1 2016

INTRODUCTION

Investors are becoming familiar with “absolute return,” but with only the broadest overall definition. It may not always be easy to identify what the product is, its characteristics, or the problems it may help to solve.

We define absolute return as a style of investing focused on alpha strategies with returns coming from beta largely excluded. While beta is usually positive, it may not always be.

The characteristics of absolute return fixed income are that it also aims to be uncorrelated with this beta. This tends to lead to a preference for relative value over directionality. This will require the use of derivatives, and it implies superior risk control. However, the liquidity of fixed income over other asset classes is retained and in some ways enhanced through symmetric position taking.

Absolute return fixed income can be used to deliver fixed income returns uncorrelated with market direction. It is a diversifier, narrowly to a fixed income allocation, and more broadly to a whole portfolio. It is also a source of discrete alpha, allowing ready identification of alpha, and access to less traditional portfolio construction methodologies.

WHAT IS ABSOLUTE RETURN FIXED INCOME?

“Absolute return” is a style of investing focused only on alpha strategies – returns derived from manager skill. Returns coming from exposure to the market are largely excluded. This is usually contrasted with “relative return” management, where a fund manager seeks to deliver a return in excess of a benchmark index. These relative returns may come either from similar “alpha” ideas, or may be “beta” – that is, a return highly correlated with market direction.

Market betas are nearly always positive over the long run: it would be strange if they were not. Stocks go up, in aggregate, in the long-term.

Bonds pay coupons and return principal, in aggregate, the vast majority of the time. Real estate values rise over time, and generate rents. 2013 Absolute Return Fixed Income: What It Is, How It Works, and Who It Is For | Q1 2016 - 2

The one exception may be commodities, where prices have fallen over the very long run, but even here the “super-cyclicality” of the market may disguise this for periods of decades.

We can observe two things about market returns. First, if there has been a successful innovation in fund management over the past few years it has been to commodify beta. It is possible to source beta easily and inexpensively in most markets, through tracker funds, ETFs, and total- return swaps. Beta is cheap. This raises good questions about why an investor should pay for active management when much of the return may simply be the market beta available elsewhere for a fraction of the price.

The second is that market betas can be negative. The S&P 500 for example delivered an annualized return of -1.4% in real total returns (that is, after inflation and with dividends) in the 1970s, and -3.4% in the 2000s. Of the Barclays Aggregate family of indices, the US Aggregate index has the longest history. It delivered negative total returns in 1994, 1999, and 2013. Indeed, periods such as the 1970s and the Volcker interest rate hikes of the early 1980s remind us that bond market underperformance can be structural and not merely a correction in a trend. With interest rates so low in much of the world, it is a reasonable question to ask as to whether a rising-rate environment is imminent.

Absolute return aims to deliver returns uncorrelated to this beta, giving investors the choice of whether they wish to be tied to this market return, or not.

CHARACTERISTICS OF ABSOLUTE RETURN FIXED INCOME

Long/short approach Absolute return fixed income is a portfolio drawn as much as is practical from alpha: from successful implementation of trades and strategies. As there is no benchmark to act as a reservoir from which the portfolio may be underweight it follows that in order to implement trading strategies effectively, absolute return portfolios need to be able to short markets as well as to go long. Indeed, managers should be indifferent as to the difference, while recognizing that the interest most fixed income instruments attract means that shorts have to overcome a negative carry hurdle.

Shorting is usually implemented directly through derivatives: futures and mortgage TBAs for example, but the credit default swap (CDS) is one of the principal vehicles for expressing shorts. Technically a form of insurance contract, when a manager “buys protection” on an underlying issuer, he or she profits if that issuer is perceived by the market to have become more risky, causing the value of that insurance – and thus the CDS contract – to rise. The reverse also applies: if he or she “sells protection” this is economically equivalent to being long the bond or issuer. These contracts are available on a wide range of underlying instruments, and together with futures allow symmetric risk-taking and hedging.

In addition, baskets of CDS are tradable allowing exposure on a long or short basis to a sector and often sub-sectors of the fixed income market. As well as outright exposures, these also allow relative value position taking. For example, the iTraxx family of European indices has a senior financials index, and a subordinated financials index. By buying protection on senior financials (“shorting”) and selling protection on subordinated financials (“going long”) a manager can effect a simple view that the spread in the financial capital structure of European banks should narrow, without taking a directional view on financials as an asset class. This strategy has obvious broader applicability.

This highlights two important characteristics. The first is that delivering returns uncorrelated to a market beta will tend, all things being equal, to a preference for relative value non-directional trades. It follows that tools to allow symmetric risk-taking are essential. Typically these will be derivatives.

Diversification A wide array of different positions brings with it diversification benefits, and these may be significant. The exhibit on the following page shows a sample of Fischer Francis Trees & Watts’ (FFTW) risk budgeting framework. Of particular interest is the benefit from diversification. This has been well-understood since Harry Markowitz articulated a systematic approach to portfolio diversification as “modern portfolio theory” in 19521. With a target annualized volatility of 350 basis points, each of eight selected alpha sources delivers, on average, a little under 100

1 Markowitz, H.M. (March 1952), “Portfolio Selection,” The Journal of Finance

FOR PROFESSIONAL INVESTORS 2013 Absolute Return Fixed Income: What It Is, How It Works, and Who It Is For | Q1 2016 - 3

basis points of target volatility. It follows that the diversification benefit accruing to the portfolio is of the order of 50%. Put differently, overall portfolio risk is halved through diversification.

Chart 1: Contribution Representativeto Risk by Factor Account Type vs Overall-Contribution Risk to Risk by Factor Type vs Overall Risk

Curve Idiosyncratic CDS Basis Gov Related Vol Swap spreads

Securitized/MTG Credit/EM In ation FX Total 1600

1400

1200

1000

latility 800 Vo

BPS 600

400

200

0 May-11 Aug-11 Nov-11 Feb-12 May-12Aug-12Nov-12Feb-13May-13Aug-13Nov-13Feb-14 May-14Aug-14Nov-14Feb-15 May-15Aug-15

Source: FFTW, Representative Account

In order to have the ability to take the broadest suite of relative value positions to get these benefits however, a manager needs the widest set of alpha opportunities. When more constraints are applied, the expected return falls, but so does the benefit derived from diversification. This point is obvious, and yet there is a less obvious corollary which is that the more constraints are put on the ability of the manager to employ the widest set of instruments, the more return falls even as risk rises. It follows that intuitive efforts to reduce perceived risk – limiting asset classes or the use of derivatives, to name two of the more common examples – may have the perverse effect of doing exactly the reverse.

Risk Management A more effective way of controlling risk is usually to set an ex ante target for that risk, and to manage the portfolio around that dynamically. This can be an explicit measure of volatility, or a proxy such as Value at Risk (VaR). Risk control is of paramount importance in an absolute return approach. The reasons for this may be thought of as both philosophical and practical.

Philosophically, the approach eschews market beta in favor of pure alpha. It is an axiom of active management – though one rarely given much publicity for obvious reasons – that a relative-return manager need get only 62.5% of his or her trades correct to be in the top quartile (i.e. perform better than 75% of the peer group). If this is inverted, it means that a top quartile manager – which for these purposes we will assume is at least one way of defining skill in a manager – could be expected to be getting approximately one third of his or her trades wrong at any given time. While this may be an uncomfortable truth, it is also at the heart of why investors attempt to diversify their risk: that one third of trades is neither predictable, nor static. In a relative-return portfolio, risk may be measured in tracking error terms: that is, the standard deviation of returns relative to a benchmark. The benchmark return will tend to be the largest driver of returns, and so necessarily the largest contributor to overall risk. That risk is not captured in tracking error, by definition.

FOR PROFESSIONAL INVESTORS 2013 Absolute Return Fixed Income: What It Is, How It Works, and Who It Is For | Q1 2016 - 4

In an absolute return portfolio, there is no benchmark2 so risk in that sense is also absolute, and measured simply as a standard deviation of the return, or volatility. Far from being an ancillary source of risk, alpha now dominates, and a manager will need to demonstrate an ability to understand and manage this risk. Approaches that may be acceptable in a universe of tracking error may swiftly be shown to be inadequate when faced with absolute return.

On a practical level, if the expected return of beta is positive, it functions as a form of portfolio insurance: poor relative performance may be disguised by positive beta generating a positive total return, albeit one inferior to the return of the market itself. This may be bolstered by the the well-established behavioral observation in favor of loss-aversion over gains-seeking, even when the outcomes are economically identical. But as absolute return does not enjoy this benefit, a loss will not be recorded euphemistically as an “underperformance,” but as a loss, or drawdown. Drawdowns cannot be eliminated, but the lack of a beta to flatter returns may result in higher manager incentivization to avoid these outcomes than might otherwise be the case, given the visibility of the true performance. This may also align investors’ and managers’ incentives to ensure that risk control is emphasized in the investment process.

Liquidity Fixed income absolute return may offer an additional benefit over and above diversification: liquidity. A feature fixed income markets enjoy is superior secondary liquidity when compared with other asset classes, with its derivatives often more frequently traded and with lower costs than its underlying instruments or issuers. As the strategy uses the same instruments, it should enjoy the same expectation of secondary liquidity. Indeed, many fixed income absolute return strategies offer the same daily liquidity as any other bond fund. Some of that liquidity can be surrendered to participate in asset classes such as loans, but that will usually be the investor’s choice – and there is nothing in the composition of an absolute return approach to require the inclusion of these less liquid asset classes.

There is some evidence that liquidity is falling, a function of decreasing numbers of market-makers, increasing regulation, and asymmetric biases in how investors are positioned after a long bull market such that crowding behavior is predictable in the event of a change of market direction. These issues are not confined to fixed income and the concerns and issues are shared across public markets. That is not to say that investors should be resigned to a sudden reduction in liquidity when volatility rises of the kind seen in 2008 whatever choices they make, although selling volatility in exchange for higher yields also implies selling liquidity, and recognition of these facts before a sell-off may help investors avoid over-reaction when these events occur.

Rather, absolute return fixed income offers investors similar liquidity, but these strategies can also short markets, and buy volatility, and thus profit from the market themes that may be reducing liquidity and raising volatility for other market participants. At its simplest this is through implicit strategies like going to cash, but also by buying puts on markets, or selling mortgage TBAs. A mix of these strategies can be employed to protect against at least some of the downside of a traditional long-only approach, while maintaining most of its liquidity.

Summary A workable definition of absolute return then is an approach which: • aims to deliver returns uncorrelated to a market beta; • aims to deliver returns from as wide an opportunity set as possible, agnostic as to whether these are long or short; • aims to deliver returns from successfully managing risk or volatility; and • aims to provide as much liquidity as a long-only strategy while benefitting from the ability to short markets and volatility.

HOW DO INVESTORS USE ABSOLUTE RETURN FIXED INCOME IN THEIR PORTFOLIOS?

Absolute return has a variety of applications for investors. The first and arguably most obvious is that freeing a portfolio return from an underlying beta is particularly relevant if the investor is concerned that the market beta will be anemic, or negative.

2 In practice, a cash benchmark such as LIBOR or Eonia will often be used as a proxy for an opportunity cost or risk-free rate.

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Fixed Income Returns Uncorrelated to Market Direction The exhibit below shows the US 10-year yield over the past 23 years, compared with the duration of that bond. Fixed income investors know that as the yield falls, the price rises: the inverse relationship of price to yield. What may be less intuitive for some is that duration rises as yields fall. This creates a pernicious but mathematically inevitable situation that as yields fall, price sensitivity – risk, in other words – rises, so even as running yields fall, the risk of capital loss increases. 2015 has seen the returns per unit of risk reach their all-time low in US Treasury notes. This fact may have been partially obscured because the increase in capital values – prices – has flattered fixed income total returns. In many cases, investors have also benefitted from large secular foreign exchange moves contributing significantly to fixed income portfolios. Both of these effects are transient. Fixed income as an asset class is delivering very little in the way of income, and with interest rates so low, there is little room for further price appreciation.

Chart 2: US 10Y Yield vs Duration

10.00 10.00 US 10Y Treasury Yield (LHS) US 10Y Treasury Duration (RHS)

7.50 9.00

5.00 8.00

2.50 7.00

0.00 6.00 Aug-90 Aug-91 Aug-92 Aug-93 Aug-94 Aug-95 Aug-96 Aug-97 Aug-98 Aug-99 Aug-00 Aug-01 Aug-02 Aug-03 Aug-04 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Source: FFTW & Bloomberg

That is not to say that there are not opportunities: there are many, all the more so for managers able to express views both long and short markets and sectors. Absolute return gives investors the opportunity to be able to benefit from these opportunities, without at the same time committing to the risk of a negative market beta.

This is a powerful reason to look at absolute return, because many investors need to maintain a fixed income exposure in their portfolios. Typically, it is used to diversify other exposures, such as equities. As the name implies, it is the portfolio allocation generating income, essential for pension funds to provide for current retirees and to cover operating expenses for many others. It is also that part of the portfolio aiming to provide stability. Simply not owning fixed income at all achieves none of these portfolio goals. Many investors would also recognize this as an aggressive asset allocation bet in its own right.

Absolute return fixed income provides that diversification. By nature of the fixed income instruments in the portfolio, it should be able to deliver income. Most importantly, it may be able to achieve both of these things without also importing a high degree of risk of capital loss.

Fixed Income Returns as a Diversifier An absolute return portfolio uncorrelated with market direction offers an additional benefit beyond avoidance of negative outcomes such as a bond bear market.

The following exhibit shows an efficient frontier, taking the Barclays US Aggregate index as a proxy for a given fixed income allocation. It is matched with FFTW’s absolute return composite, as the two extremes of an allocation. An interesting point is found at an allocation of

FOR PROFESSIONAL INVESTORS 2013 Absolute Return Fixed Income: What It Is, How It Works, and Who It Is For | Q1 2016 - 6

75% Barclays Aggregate, 25% FFTW absolute return composite: risk falls considerably more than return is sacrificed, so risk-adjusted return increases significantly. Another way of expressing this is that adding an uncorrelated asset to an existing portfolio will increase its risk- adjusted return, all things being equal. It is not necessary to take a binary view on market direction for a portfolio to benefit immediately and significantly in risk terms from such an allocation.

Chart 3: Efficient Frontier of Risk-Adjusted Returns: FFTW Absolute Return Fixed Income Composite & Barclays US Aggregate index

Efficient Frontier: FFTW Absolute Return Fixed Income and Barclays US Aggregate Bond Index

Risk Adjusted Return of combinations: 31−Oct−2006 to 31−Aug−2015 Net of Fees*

1.9 1.8 1.7 1.6 1.5 1.4

4.60%

100% Barclays US Agg 1.3 4.40%

25% FFTW ARFI Composite / 75% Barclays US Agg 4.20%

1.2

4.00% 50% FFTW ARFI Composite / 50% Barclays US Agg Annualized Return 3.80% 75% FFTW ARFI Composite / 25% Barclays US Agg

3.60%

3.40% 100% FFTW ARFI Composite

2.00% 2.20% 2.40% 2.60% 2.80% 3.00% 3.20% 3.40% Annualized Volatility

Source: Bloomberg, FFTW Oct 31, 2006 - Aug 31, 2015 * Net of fee returns were calculated using the representative fee schedule of 45bps on first $150 million; 40bps on next $150 million; 30bps thereafter annualized. Past performance is not indicative of future results which may vary. There can be no assurance that the investment objectives of any portfolio will be achieved.

Source: Barclays Capital

Absolute Return as an Alternative To expand on this theme, we have focused on the fixed income side of absolute return fixed income. To be sure, the classic asset allocation might be a 60/40 split between equities and fixed income, with some variation to take into account factors such as conviction, market outlook, or the duration of liabilities. However many asset allocators also make provision for alternatives.

This can mean an asset class that is neither fixed income nor equity. Examples include property, commodities, or so-called exotic betas. What these allocations tend to be targeting is not difference in itself, but rather an uncorrelated return stream. Uncorrelated returns will tend to increase risk-adjusted returns, all things being equal. Some exotic betas may offer qualitatively different sets of returns: structurally higher but lower in liquidity for example, or one lacking in efficient secondary markets. More typically, difference itself is assumed to be a proxy for lack of correlation: an investor “knows” the difference between equities and commercial rents.

Absolute return can offer exactly the same benefits. If the returns are generated from alpha, it should be the case that there is no necessary linkage between these returns and those of the underlying market. An uncorrelated return stream is an alternative, in itself: it is not the same as the market return and its risk/return profile will clearly be different. We may think of the portfolio as less a set of bonds and their derivatives, but of trade ideas which happen to use bonds or derivatives for their construction. At first sight this may appear to be sophistry but as the correlation matrix below shows, it is in fact quite possible to generate returns from fixed income wholly uncorrelated to market beta.

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Chart 4: Low to Negative Correlations with Equities and Fixed Income

1 FFTW ARFI 1. 00

-0.191 US 10Yr 0.80

-0.240.741 Deu 10Yr 0.60 Barclays US 0.01 0.74 0.68 1 Cr edit 0.40 Barclays Global 0.02 0.81 0.78 0.89 1 Agg 0.20

0.04 0.83 0.64 0.92 0.93 1 Barclays US Agg 0.00

0.28 -0.25-0.44 -0.14-0.23 -0.061 GSCI Comdty -0.20 JPM EM External 0.35 0.23 0.04 0.49 0.47 0.59 0.42 1 Debt -0.40

0.41 0.08 -0.130.290.310.400.520.811 JPM EM Local Debt -0.60

0.42 -0.25-0.37 -0.01-0.03 0.04 0.51 0.60 0.66 1 S&P 500 -0.80

0.45 -0.23-0.38 0.04 0.01 0.10 0.59 0.67 0.75 0.97 1 MS CI World -1.00

r l t d FI it al g a b 0 rl AR rn 50 o 10Y 10Yr ed ob Ag mdty e De t t l W TW eu Cr Gl g US Ex b a &P US D ys CI Co e c S CI FF US Ag ys D Lo S la EM M ys rc la GS M rc E la Ba M rc Ba JP M Ba JP Absolute Return: “Multi Strategy Alpha (USD)”. Source: FFTW(Prism). Dates: 31-Oct-2006 to 30-Sep-2015 MSCI Global:”MXWO Index” / S&P 500:”SPX Index” / Barc US Agg:”LBUSTRUU index” / Barc Glob Agg:”LEGATRUH Index” / US 10Yr:”TY1 Comdty” / Deu 10Yr:”RX1 Comdty” / Barc US Long Gov/Crd:”LGC5TRUU Index” / GSCI Comdty:”SPGCCI Index” / JPM EM External Debt:”JPGCCOMP Index” / JPM EM Local Debt:”JGENVUUG Index” / Source: Bloomberg, Dates: 31-Oct-2006 to 30-Sep-2015. Past performance is not indicative of current or future performance.

In addition to an allocation to alternatives on its own merits, investors with fixed liabilities may find this particularly interesting. Insurance companies with matched portfolios operating under a Basel III regime may be looking for a return-seeking portfolio, of which absolute return may be an ideal complement. Here, an offering in a fund is likely to be of interest in most jurisdictions given tax treatment of derivatives, though investors should ensure that fund rules meet their own requirements on issues such as ratings in particular.

The same logic applies to liability-driven defined benefit matched pension plans, where a split is made between a matching portfolio and a return portfolio. The return portfolio will be aiming to generate returns uncorrelated with the moving the matching portfolio, and clearly alternatives are likely to do that well.

As shown above, the fact that the underlying instruments are drawn from fixed income and currency is both not necessarily relevant in terms of being an alternative, and yet the secondary liquidity is maintained. This may be an attractive combination.

Absolute Return as Discrete Alpha The last use for absolute return fixed income returns to the opening discussion on commoditized beta. If beta is cheap some investors may feel that paying a manager on the basis of skill to deliver returns that can be sourced from an ETF or total-return swap is inefficient.

The problem is arguably worse than over-paying for generic skill. The issue lies in identifying the alpha, and separating it from beta. In other words, how does an investor readily identify that the manager is actually delivering alpha, rather than simply leveraging beta? This may not matter, except that beta strategies rely on market timing to a great deal: if not, a high beta fund or strategy generates higher highs but deeper troughs: volatility rises linearly with return. There is nothing wrong with picking a point on the efficient frontier more optimal for a given risk tolerance, the problem is not knowing that this is what the strategy really is. With a comingled alpha and beta, this process of identification and discovery can be very difficult, and it often only becomes apparent once underperformance or drawdown has happened. This is likely to be sub-optimal.

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Indeed, many investors have concluded that this problem is so hard that they have abandoned active management altogether. This is rational, if manager skill cannot be identified ex ante.

Absolute return investing aims to isolate that manager skill, and does not blend it with a market return. It should be possible to demonstrate this easily, with metrics of internal diversification to given factors ensuring no hidden directional biases, as well as with data such as the correlation matrix shown above. What remains is a measure of manager skill, and one which can be added to an asset allocation either as an alternative as we saw above, or as the alpha engine when paired with a beta.

This idea was popularized in the last decade as “portable alpha” and it is not without negative connotations today. That the terminology may have been misapplied is not in doubt, but the concept remains valid. A portfolio comprising discrete alpha returns and a matching beta should offer qualitatively the same experience as a portfolio blending alpha and beta, but where the investor can identify the source of returns precisely, and equally identify that which is skill, and that which is index replication.

Chart 5: Absolute Return: Alpha Isolated and Identified Global AggGlobal Aggre Global Agg Absolute Return β 4.78 4.78 α 0.8425 0.8425 Absolute Return α β+α 5.6225

Global Aggregate Beta β

Global Aggregate Managed Portfolio β+α

Global Aggregate Beta + Absolute Return β α

Return For illustrative purposes.

Indeed, there is no particular reason to pair fixed income absolute return with a fixed income beta: given the commoditized nature of large- cap equity investing in the US, the attractiveness of a portfolio aiming to deliver the returns of the S&P 500 plus an average of 300 basis- points of uncorrelatedAbsolute alpha Return may beα obvious, and this example can be extended to any tradable market beta. While conceptually there is Investor's DGS Commod S&P Beta + Absolute Return no difference between this and a beta portfolio with an alternative, it may be efficient for investors reporting allocations on balance sheet, β 5 1.92 6.34 for example for tax purposes, to have an allocation wrapped as one portfolio, or this process of wrapping may make administration more S&P Beta + Absolute Return β α α 0.8425 0.8425 0.8425 0.8425 straightforward.

GSChart Commodity 6: Absolute Beta +Absolute Return FixedReturn Income:β Portableα Alpha

Investor's Defined Liabilities + AbsoluteAbso Returnlute Return α β α Return S&P Beta + Absolute Return β α

Goldman Sachs Commodity Index + Absolute Return β α

Investor's De ned Liabilities + Absolute Return β α

Return

For illustrative purposes.

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Summary Absolute return fixed income can be used for any of: • fixed income returns uncorrelated with market direction; • fixed income returns as a diversifier; • absolute return as a diversifier; and • absolute return as a source of discrete alpha.

Conclusion Absolute return fixed income aims to offer investors a style of investing focused on alpha strategies with returns coming from beta largely excluded. It may be of interest because while beta is usually positive, it may not always be. Returns uncorrelated with this beta offer many of the benefits of traditional fixed income, without the risk of a negative beta. Indeed, the uncorrelated alpha may allow better identification of what alpha and beta actually are, and taken further, may allow a true liquid alternative, or with portable alpha strategies, different ways to construct asset allocations of alpha against a range of betas. Ultimately, discrete alpha, transparency, superior risk control, in a package offering diversification and liquidity are likely to be of interest to most asset allocators and investors.

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Biography

Alex Johnson Head of Absolute Return Multi-Sector Fixed Income

Alex is the Head of Absolute Return Multi-Sector Fixed Income at FFTW, a subsidiary of BNP Paribas Investment Partners. He is responsible for the management, growth and development of global absolute return strategies, and he is the portfolio manager for multi-strategy absolute return portfolios. Alex rejoined FFTW in 2010 as a result of the combination of FFTW and Fortis Investments. He is based in New York.

Prior to his current role, Alex served as Co-Head of Global Fixed Income for FFTW having previously been Head of Portfolio Management. Prior to this, he was employed as a Senior Portfolio Manager at Fortis Investment Management, which was integrated into FFTW in 2010. Before joining the firm in 2008, Alex was on the Global Fixed Income team at BlackRock having spent the previous four years at FFTW in London and New York where he was the Market Specialist responsible for short duration interest rate strategies across the major currency blocs. Alex came to FFTW from Paribas Asset Management, where he worked as a Portfolio Manager for UK and European funds.

Alex has over 12 years within the BNP Paribas organization and over 19 years of global fixed income portfolio management experience. He received an MA in Law from Balliol College, University of Oxford and an LLM in Law from the University of Virginia.

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