Metzler Payden is set to launch a Dublin-based high yield bond fund using the expertise of both its ...
Metzler Payden is set to launch a Dublin-based high yield bond fund using the expertise of both its US and Europe-based analysts.
Kevin Height, director of Metzler Payden, said: "Given the size and depth of the US high yield market, the fund will invest around 80%-85% of its assets there."
The euro-denominated fund will focus solely on developed markets and will not contain any convertibles, Height said.
The US research will be done by Metzler Payden's team of analysts based in Los Angeles, while the European work will be done by the company's team in Frankfurt.
Height said: "We have eight experienced investment professionals in Los Angeles and eight in Frankfurt. Having analysts based on both continents is especially important as it gives us the ability to do in-depth credit analysis."
The global high yield market is expanding at present, providing opportunities for investors, according to Height.
He added: "Europe in particular has expanded tremendously over the last few years. Companies are realising that high-yielding debt is a great way for them to access capital markets." He also sees demand as being strong, and added: "We think many European institutions and pension funds are looking for additional yield and also looking for diversification. High yield is perfect as it has a relatively low correlation to traditional fixed interest and equity markets."
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