HSBC Halbis Partners has launched a distressed debt fund. The HSBC Distressed Opportunity fund, ma...
HSBC Halbis Partners has launched a distressed debt fund.
The HSBC Distressed Opportunity fund, managed out of New York by Kim Golden aims to generate absolute returns with low volatility.
The portfolio was backed at launch by $50m (£27.63m) of HSBC investment capital.
Golden, who will be assisted on the fund by Noel Hebert, already manages distressed debt strategies in the HSBC multi-strategy fund and the new vehicle will mirror opportunities employed in this portfolio.
Golden, who is also the managing director at HSBC Halbis Partners, said: "The default rate in the distressed market troughed in 2005. In December alone we saw a $9bn spike in new supply.
"Through the remainder of 2006 the default rate should continue to trend up and we are ready to be opportunistic."
Golden joined the company in 2004 from T. Rowe Price Recovery Funds where he was managing director.
He was also a former officer at the US Treasury in the office of International Monetary Affairs.
Hebert joined HSBC in late 2005 from Velo Capital where he was assistant portfolio manager, having formerly served as a telecoms, media and technology analyst for credit rating agency Moody's Investor Service.
The HSBC Distressed Opportunities fund is the seventh vehicle offered by the alternative investments team of HSBC Halbis Partners, formed in May 2005 to replace HSBC Asset Management. Other areas it focuses on includes fixed interest and emerging markets investments.
HSBC Halbis Partners offers distressed debt fund
Kim Golden to manage portfolio
Fund aims to generate absolute returns with low volatility
To increase ‘national footprint’
Reacting to higher US rates
‘Charity lump sum death benefit’
Our weekly heads-up for advisers
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.