Lombard Odier Investment Managers (LOIM) has launched a strategy investing in companies which have fallen down the ratings spectrum but still display strong recovery prospects and an attractive valuation proposition.
The Fallen Angel Strategy builds upon LOIM’s research into fallen angels – bond issuances that have been downgraded from investment grade to high yield but are still undervalued relative to their rating peers.
LOIM’s research into the fallen angel phenomenon has shown superior returns over the past 16 years, delivering the highest returns of all rating categories.
The Fallen Angel Strategy will expand LOIM’s fixed income franchise and offer ‘through the cycle’ risk-adjusted returns for investors.
It is overseen by Yannik Zufferey, CIO for fixed income and managed by Ashton Parker, lead portfolio manager and head of credit research.
Zufferey said: “At LOIM we have a long-standing track record in delivering robust returns from crossover credit strategies, and we believe our Fallen Angels Recovery strategy represents a similarly compelling investment opportunity.”
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