When launched in August last year, the fund OYSTER European Subordinated Bonds was added to the existing fixed income & credit range of the SYZ Asset Management offering, giving investors access to alternative and attractive sources of yield and total return in credit. As result of the continued balance sheet clean-ups and new regulation on the banking sector, the European subordinated bond space is rapidly expanding and today exceeds EUR 660 bn*. Despite attractive yields, ninety-five per cent of issuers have investment grade ratings and solid fundamentals. With a current average yield similar to the high yield sector, subordinated bonds offer investors new and compelling sources of return.
Early investors in the fund have benefited from the attractive returns over the past year that have been supported by active management of its expert investment team. The significant commitments to the fund since its launch are a testament to the opportunity of the strategy and the performance achieved. The fund’s approach appeals to investors seeking diversification in their bond allocation, as well as those searching for higher yielding bonds via a robustly risk-managed process.