Before the Ardea team decamped and its subsequent deal with Aberdeen, Credit Suisse Asset Management competed for mandates. State Street Global Advisors also does, but runs passive funds only. The Queensland Investment Corporation, NAB and AMP run internal portfolios of ILBs. It is difficult to trade the complex instruments, and the market harbours numerous traps for unwary investors. “If you’re not in it regularly, you’ll have trouble trading them and will probably be taken advantage of,” Alexander says. “It is not very transparent; it’s easy to trade something at the wrong price, or at the price that the sell-side puts on bonds that don’t trade often,” Hamlyn adds.