Hedge funds stalk battered corner of bond world

Closed-end funds trade at lowest levels since the financial crisis

Hedge funds stalk battered corner of bond world

Wall Street traders are circling a corner of the bond world they say is taking an unwarranted beating in anticipation of rising interest rates.

They are betting on closed-end funds, often volatile structures that mostly cobble together risky collections of bonds and often employ leverage, or borrowed money, to try to boost returns.

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Venture Debt Firms Tilt Toward Mature CompaniesExternal link

Venture Debt Firms Tilt Toward Mature Companies