Specialist fixed income and credit manager ECM has brought out a senior secured fund which will concentrate on Northern, non-peripheral Europe. By focusing on loans and high-yield bonds with senior positions in the capital structure, the fund aims to benefit from the high recovery rates seen for senior debt which have helped reduce volatility and protect investors from downside losses.
The fund will also aim to take advantage of new issuance and the shortfall in bank lending, and will invest in secondary market loans as well as new issues. ECM head of alternative investments, Matthew Craston, said: “The high yield bonds as well as the loans held by the fund will occupy senior positions in the issuer group’s capital structure. We believe that a fund combining senior secured loans and bonds will provide investors with excellent exposure to the corporate sub-investment grade credit market.”