Legg Mason is introducing derivatives usage on its £522 million Global Multi Strategy Bond fund, Financial Times reports. The group is also rebranding its Legg Mason Sterling Corporate Bond Plus fund to Legg Mason Global Blue Chip Bond. The move will enable Western Asset, which runs Legg Mason’s fixed income mandates, to artificially reduce interest rate exposure. The addition of derivatives will also allow the manager to purchase protection in relation to specific bonds, in the form of credit default swaps, to quickly lower credit risk if necessary.
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