Bond rout sees Brevan Howard traders 'grounded'
Global macro major Brevan Howard has grounded several traders in a move aimed at limiting losses after the collapse of Silicon Valley Bank and Signature Bank triggered big swings in the bond market, according to a report by Bloomberg.
Unnamed Bloomberg sources have revealed that at least three money managers, all specialised in rates trading have been suspended from placing further bets after they hit maximum loss levels.
According to an investor document seen by Bloomberg, Brevan Howard's flagship Master Fund lost 1.2% during the first 10 days of March, bringing the fund to a year-to-date loss of 0.4%.
Like other large hedge fund firms, Brevan Howard, which manages more than $30 billion, uses loss limits to prevent overall performance being significantly affected by a few losing bets.