Interest rates

Macro products that trade everything from euros to oil have struggled amid soaring stock valuations and ultra-low interest rates.

After a recent policy switch, many clients at the wirehouse can no longer use balances from their deposit accounts to purchase shares in these funds.

Self-directed brokerage accounts at the firm hold about 20% of their portfolios in cash.

Those that shorted the market suffered “steep losses,” while market-neutral products posted “modest gains.”

Appetite for cyclical plays like financials has picked up as trade negotiations between the U.S. and China show signs of progress.

Given that almost one-third of leveraged loans are just a downgrade away from triple-C, even a modest slowdown could create a snowball effect of sorts.

Can more education boost the popularity of these funds?

“Impacted positions span all staffing grades, as well as organizations and locations across the company," the company says.

The fund’s losses stem from bearish wagers on global interest rates, according to a person familiar with the matter.

Angst over the Fed’s decision to lower borrowing costs has seeped into the $3.8 trillion market for municipal bonds.