Marathon Asset Management LP, a hedge-fund operator that manages about $10.5 billion, is betting prices will fall in the high-yield, high-risk bond market because interest rates and defaults probably will rise.
Treasuries rose for a third day as DoubleLine Capital LP’s Jeffrey Gundlach said yields are poised to fall further and Pacific Investment Management Co.’s Bill Gross cut his holdings of U.S. government-related debt.
Treasuries climbed with gold while U.S. stocks erased losses as investors weighed developments in Ukraine while concern intensified that slowing growth in China will hurt demand. Oil retreated on rising U.S. supplies.
Treasuries rose a second day as demand at the government’s auction of $30 billion in three-year notes was bolstered by the highest yields in six months and investors seeking a haven in the world’s most liquid assets.
After reporting its worst quarterly sales drop in almost 15 years, RadioShack Corp. is as good as defaulted in the eyes of credit investors, according to Moody’s Corp.’s capital markets research group.
Fidelity Investments’ John Carlson and DoubleLine Capital LP’s Luz Padilla pursue different strategies in their emerging-market debt funds. One thing they have in common is buying bonds denominated in U.S. dollars.