Eaton Vance launches bonds-to-loans fixed income fund

Loan_applicationEaton Vance Management has launched a global high yield bond fund that will invest in instruments ranging from bonds to bank loans.

The US asset manager has launched the Ireland-domciled Ucits fund through its Eaton Vance Management (International) business.

The investable universe of the fund, which is called Eaton Vance International (Ireland) Global High Yield Bond Fund, includes secured and unsecured bonds, bank loans, convertible debt, and preferred stock.

Michael W. Weilheimer, director of high yield bond investments at the firm, said: “Equity and broad fixed income markets’ returns are currently impacted by their sensitivity to policy changes and uncertain macroeconomic environments, meaning investors are on the lookout for alternatives.”

The fund’s investment strategy aims to avoid regional biases and also to capitalise on arbitrage opportunities created by an increasing number of multiple currency issuers, the firm said.

The fund is a sub-fund of Eaton Vance International (Ireland) Funds Plc and will seek registration in Germany and Switzerland, alongside other countries where the fund is already approved, including the Netherlands, Spain and the UK.

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