New York-based credit investment specialist Muzinich & Co. has launched a new fund looking to tap the most attractive global credit opportunities across all market cycles.
The Muzinich & Co. Global Tactical Credit fund is Dublin-domiciled and will be run by Mike McEachern.
Citywire previously reported plans to bring the absolute return strategy to European investors having launched it in a US-only format at the beginning of 2013.
In the Ucits-compliant version, McEachern will apply a bottom-up process to locate the best investment opportunities across investment grade, high yield corporate bonds and corporate loans.
It is designed to assess relative value across rating, duration and geographic spectrums.
In addition, McEachern may use portfolio hedging techniques to help reduce short-term volatility during periods of rising interest rates or spread widening.
Commenting on the launch, McEachern said: 'The prospect of rising interest rates has prompted demand for nimble, multi-asset fixed income strategies as a complement to more traditional investments.’
‘We can do this by moving in and out of global credit sectors, as well as up and down the credit quality and duration spectrum, as different fixed income assets move in and out of favour.’
The fund targets a return of Libor plus 5-7% and seeks to protect capital in weak or falling markets. It is available in sterling, dollar and euro share classes.