Swiss asset manager Syz AM has launched the Oyster European Subordinated Bonds fund.
The fund is managed by Milan-based co-portfolio managers, Andrea Garbelotto and Antonio Ruggeri. It is registered in 11 European countries (Austria, Germany, Belgium, France, Italy, Luxembourg, Spain, Netherlands, Sweden, Switzerland and United Kingdom).
The Oyster European Subordinated Bonds invests in a broad universe of subordinated bonds. The management team aims to diversify its bond-picking in terms of sector (across banks, insurance, non-financials) and seniority (across a lower part of the capital structure).
The liquidity of instruments remains key to the fund’s process, and only the most liquid bonds are considered for investing. The portfolio managers analyse both issue and issuer fundamentals
Garbelotto said: “We started to invest in subordinated bonds after the 2008 crisis: at that time, market fears severely impacted the entire financial sector and pushed valuations down. Since then, we have gradually built our exposure to the segment and developed proprietary models to select the best mispriced opportunities.”
Katia Coudray, CEO of Syz Asset Management commented: “We see a lot of investment opportunities in the subordinated bond market. The financial sector is deleveraging and this trend is likely to continue.
“Andrea and Antonio have had a long focus on targeting higher-yielding corporate bonds and managing their portfolios with conviction. I am proud to have such a proven and engaged team focused on delivering long-term in this exciting area of the market. It presents a new solution to our investors and evolves our fixed income offering.”
Syz Asset Management is part of Syz group which has around €36bn of AUM.