Oddo launches high yield bond fund despite bubble fears

Wheat field1Oddo Asset Management has launched a fund investing in high-yield bonds in Europe, defying fears from some investors that there may be a bubble in the asset class. The firm's head of fixed income management, Alain Krief, will manage the fund, which will build on the firm's existing range of bond funds that it says have drawn €1.4 billion in sales since 2009. The fund is part of Oddo's Luxembourg Sicav and is authorised for sale only in France, though procedures to bring it to market in Italy, Switzerland, Germany and Belgium are under way. Investors can subscribe in euros, dollars or Swiss francs. Some investors have expressed fears that large flows into high yield bonds may foretell a correction in the market, with a few claiming the large inflows amount to a bubble. Research firm S&P Capital IQ says the average yield on European non-investment grade bonds fell to 6% in January 2013 compared with 11% in early 2012. However, managers of high yield bonds funds argue the asset class still offers attractive returns in an environment where government bond yields are low and equities volatile. As of last year, Paris-based Oddo Asset Management looked after €12.7 billion of assets. ©2013 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.