Telecom Bonds Cause Manager Bradford & Marzec 38% Losses

The fixed income manager for institutions has suffered from blowups in telecom bonds, losing 38% in just over one year.

Some clients are reacting with their feet. The firm has experienced $1.1 billion in client terminations in the fourth quarter alone, including the Merced County (California) Employee's Retirement System, the Colorado Fire & Police Pension Association and the Nevada Public Employees' Retirement System.

The manager has acknowledged the losses and has "intensified [its] disciplines with regard to credit in general."

Source: Pension & Investments, June 23, 2003