High Yield Corporate Bonds
The High Yield Corporate Bonds strategy has a strong track record dating back to year 2001 and has successfully been distributed as both Danish UCITS and discretionary mandates.
For the strategy, risk premia investing is a core part of our credit investment process. The approach is bottom-up driven analysis of companies and building on a combination of the in-house developed multi-factor risk premia model as well as a qualitative due diligence of the issuers. Quantitative models cannot be directly implemented in today’s illiquid credit markets, so the team is further adding value by ‘translating’ the strong model results into an actual tradable portfolio.
We see our portfolio size as being close to optimal, as we have sufficient AUM to get full attention from sell side firms, but still easy to execute trades without moving the market - also in the rationed primary market where we receive meaningful allocations due to our consistent dialogue with syndication teams.
All portfolio managers have a dual role as portfolio manager and analyst to make sure no relevant information is lost in communication between analyst and managers. The team has full discretion on all decisions within the product range. Buy/sell decisions are taken by majority vote. However, in practice nearly all decisions are taken unanimous.