Nomura Asset Management has announced the launch of its second US High Yield Bond strategy focusing on the lower-risk segment of the high yield universe.
In contrast to Nomura’s existing strategy, the new fund will focus on holdings with a minimum credit rating of B3/B- and avoid CC rated and distressed debt names.
The Ireland-domiciled Ucits fund is managed by Amy Yu Chang, executive director and portfolio manager at Nomura Asset Management supported by a team of 12 credit analysts.
Chang comments on the launch: “It is a particularly appropriate time to launch this Fund as we believe that the US High Yield market offers an attractive yield in a low yield world. We currently expect a slow growth environment coupled with an accommodative Fed and global central bank stimulus, which are supportive for high yield. Additionally, we expect defaults, which were mostly concentrated in the Oil & Gas and Metals & Mining sectors, to decline from their recent peak.