More bond managers switch to manual pricing amid market swings

Increasing numbers of fixed income managers are moving towards manual pricing of underlying assets am...

Increasing numbers of fixed income managers are moving towards manual pricing of underlying assets amid ongoing market swings. But some groups are sticking to pre-credit crunch pricing methods, citing potential conflicts of interest in managers pricing their own assets. Extreme market volatility raised questions about the reliability of iBoxx as a pricing method, as leading bond managers told Investment Week in September. This was due to the risk of a significant proportion of bonds being overvalued because of iBoxx's inability to cope with rapid market falls. Aegon's Phil Milburn was...