Oddo AM launches maturity high-yield bond fund
French asset management company Oddo AM launched its eighth maturity high-yield bond fund, Oddo Haut Rendement 2021.
This vehicle, available until 31 July 2015, focuses on high-yield corporate bonds.
Mainly issued by European headquartered and BB+ to B- rated companies, those bonds will not expire over 6 months following 31 December 2021.
Alain Krief, head of Fixed Income at Oddo AM, said: “B-rated bonds represent a real investment opportunity to our opinion. Penalised by a global risk aversion, they faced a readjustment from mid-2014. Moreover, primes gap between B and BB rated exceeds clearly their historical average. We have good visibility for the 18 to 24 coming months. Companies largely refund themselves, postponing their debt expiry in 2018, 2019 and 2020 and therefore the risk of a short-term default.”
Oddo AM, managing €14,3bn of assets, is present on six financial markets.