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Lyxor, Wells Fargo launch financial bond fund
02 March 2017
High-yielding financial bonds offer an attractive risk-return, Lyxor's experts reckon
A new fund from Lyxor and Wells Fargo Asset Management aims
to generate returns by investing in high-yielding debt from
The investment vehicle, dubbed the Lyxor/Wells Capital
Financial Credit Fund, adds onto Lyxor’s existing
€2.6bn Alternative UCITS platform.
It will concentrate on fixed income credit instruments such
as convertible bonds of global financial sector companies
with a European focus.
"The global high yield financial bond sector has become a
significant stand-alone asset class, with expected issuance
volumes of approximately €230bn* over the next five
years," executives wrote in a joint statement.
"Due to the greater oversight, stricter regulation and
liquidity constraints imposed on the financial sector,
high-yielding financial bonds offer an attractive risk-return
profile compared to corporate bonds."
Both Lyxor and Wells Fargo's investment experts believe that
their credit research and active asset allocation has the
potential to generate sustainable returns over the long
Satish Pulle, a senior portfolio manager at ECM Asset
Management, part of Wells Fargo Asset Management, will lead the