The strategy targets a return of low teens, net of fees per annum. Active management is key to deliver this return, with a focus on deep structural and collateral analysis and relative value between instruments and markets.
- We see opportunities in the structured credit market across the capital structure, in both senior and mezzanine/equity tranches, across different collateral types and in both the U.S. and Europe.
- We adopt a catalyst-based, value-driven investment approach across our strategies that leverages BlueBay’s long established fixed income infrastructure and resources. This active approach has been established by the Structured Credit team who have expertise in the structural complexities of asset-backed securities across a range of collateral types; including residential/commercial mortgages, credit cards and leveraged loans.
- Our strategy offering is designed to meet the needs of investors in both the investment grade and higher-yielding space.
- Opportunistic investment approach across the full capital structure.
- Flexibility to invest across underlying asset classes, with a focus on senior secured loans, residential and commercial mortgages, credit card and auto loans
- Ability to rotate between regions according to relative value and achievable risk-adjusted return
- Significant focus on reviewing quality of underlying collateral
- Diligent review of each investment's structural complexities and legal documentation
- Conduct detailed due diligence on managers to assess capabilities
- Focus on total return while balancing ethos of downside protection
- BlueBay believes that taking into account environmental, social and governance (ESG) factors is an important aspect of the investment process. As such, ESG integration – the systematic review of material ESG investment risks – is applied across all our strategies.