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

Ted Seides interviews Nancy Zimmerman, co-founder and managing partner of Bracebridge Capital, a $13 billion alternative asset manager focused on fixed income arbitrage that she started in 1994 with Gabe Sunshine and initial capital from David Swensen at Yale. The conversation covers her path from pricing securities to investing, why inefficiencies persist in fixed income, and where the firm looks for mispricings today across developed market rates, structured credit, corporates and emerging markets. It also walks through Bracebridge's process for sourcing ideas, assessing relative value, sizing positions, building the portfolio and managing risk, and closes on team building, client alignmen

1. Bracebridge was founded in 1994 by Nancy Zimmerman and Gabe Sunshine with capital from David Swensen at Yale, and now runs $13 billion in fixed income arbitrage.
2. The discussion traces her move from pricing securities to investing and the sources of inefficiency in fixed income markets that she says persist over time.
3. The firm's current hunt for mispricings spans developed market rates, structured credit, corporates and emerging markets.
4. The conversation covers Bracebridge's process for sourcing ideas, assessing relative value, sizing positions, constructing a portfolio and managing risk, plus team building and client alignment.