BlackRock, Voya Revive a Credit Trade That Returned Double-Digits
- Firms raise cash to buy asset-backed securities with Fed help
- Funds may struggle to match 2009 returns amid tighter spreads
The Term Asset-Backed Securities Loan Facility is to support the flow of consumer credit.
Photographer: Dustin Chambers/Bloomberg
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Money managers are reviving one of the most profitable credit trades of 2009, thanks to the Federal Reserve.
Dozens of firms, from BlackRock Inc. and Voya Financial Inc. to credit specialists Palmer Square Capital Management and Varadero Capital, are raising funds to deploy into a central bank lending program that’s being resurrected to support the flow of consumer credit, according to people with knowledge of the matter.