Nancy Zimmerman – People, Process, and Fixed Income Arbitrage at Bracebridge (EP.517)

Bracebridge's Nancy Zimmerman says fixed-income arbitrage inefficiencies have not shrunk after 34 years, and AI hyperscaler debt issuance is creating fresh mispricings.

• $13B fixed-income arbitrage shop: Bracebridge, founded 1994 by Nancy Zimmerman and Gabe Sunshine with seed capital from Yale's David Swensen, targets uncorrelated alpha across DM rates, structured credit, corporates, and emerging markets.
• Persistent inefficiencies: Zimmerman attributes decades-long mispricings to constrained economic agents, benchmark-driven passive investing, ETF creation/destruction mechanics, ratings-agency serial correlation, and central bank yield-curve management.

Themes, sentiment and reasons are AI-written paraphrases, checked so they never quote an episode. They may contain errors. Not investment advice. Episodes remain the property of their creators.