Syz & Co launches global high yield fund
SYZ & CO has launched a global high yield fund in an environment the Swiss banking group says favours such asset classes.
The OYSTER Global High Yield will invest in high yield fixed income investments and be managed by Seix Investment Advisors, based in the US.
Syz & Co said it expected the fund to be registered in several European and Asian countries shortly.
Syz & Co pointed to high yield bonds’ lesser correlation to other asset classes, to companies having strong balance sheets, and to “current double-digit yields [being] inconsistent with the default rates forecast for the next two years.
“The implied default rate is nearly four times higher than the forecasts for company defaults, and one-third higher than in a recessionary scenario. Finally, after downturns, high yield has typically delivered strong positive returns,” Syz & Co said.
The Ucits fund based in Luxembourg will hold between 80 and 110 issues.
It will offer US dollar, euro- and Swiss franc-hedged share classes.