AllianceBernstein has launched global AB Financial Credit Portfolio that offers a dedicated credit strategy investing in this fast-growing sector. The fund seeks the best risk adjusted opportunities across the capital structure of financial companies around the globe, with a focus on subordinated debt including Additional Tier 1 (AT1).
The AB Financial Credit Portfolio is managed by Jorgen Kjaersgaard and Matthew Minnetian who are supported by a team of credit and quantitative analysts as well as specialist traders.
Jorgen Kjaersgaard said: “Since the financial crisis in 2008, banks have significantly de-levered their balance sheet and now hold a higher level of capital and better quality assets. We expect the $200bn market for Additional Tier 1 (AT1) to grow as emerging markets banks, especially from China, and second tier European banks start issuing such securities.”
Lee Matthews, director, UK Sales added: “The differentiating risk factors for subordinated debt can provide attractive risk adjusted returns, especially as rising rates are expected to have a positive impact on bank profitability. Given the increasing size of the market and its complexity, we see growing investor demand for a dedicated credit fund investing in this sector.”