BlackRock Global Long/Short Credit Absolute Return Credit
GLSC Seeks to Isolate Credit Risk
GLSC seeks to drive returns through allocation and management of credit risk
The Fund seeks to neutralize the impact of small and large changes in interest rates by tailoring hedges to each trade
and asset class
ā
Maintaining a duration of zero makes GLSC a simple solution to protect from the risk of rising rates
All non-USD positions are regularly hedged back to USD
Hypothetical Illustration of Effects of Duration
Duration
in Years
BlackRock
Global
Long/Short
Credit Fund
0
No
Impact
The potential pain if rates spike 1%
(change in bond prices)
2
-2%
- 4%
6
-6%
Illustrative Duration and Currency Hedge
Go long a bond +
Credit
Risk
Interest
Rate
Risk
Currency
Risk
Apply hedges
Sell
--> Treasury
futures
Corporate bond
inherent risks*
Remove
Interest
Rate
Risk
Sell FX
forwards
Remove
Currency
Risk
=
FOR FINANCIAL PROFESSIONAL USE ONLY. NOT TO BE SHOWN OR DISTRIBUTED TO THE GENERAL PUBLIC.
Isolate credit
risk
For illustrative purposes only. Assumes the purchase of a non-USD-denominated bond. No currency hedge is necessary for securities that are USD denominated.
BLACKROCK*
Credit
Risk
USR0418U-470515-1498457
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