Pattullo and Barnard rebuild long position in iTraxx Crossover

Duo take steps to reverse position taken in January

Henderson’s John Pattullo and Jenna Barnard have begun to rebuild a long position in the iTraxx Crossover, a derivative which increases exposure to European high yield credit. Pattullo and Barnard initially introduced the CDS index position, which tracks 50 European Crossover credits, to the Henderson Strategic Bond fund during summer and autumn of last year – with the overlay equating to 25% of the vehicle’s gross exposure. The managers initially added the five-year Crossover at a credit spread of between 600bp and 800bps, but took profits on the position when it tightened into 400bp...