Neuberger Berman launches interest rate protected trust

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Former Lehman Brothers subsidiary Neuberger Berman has launched the largest investment trust of the year so far.

The Neuberger Berman Global Floating Rate Income trust, which will hedge against interst rate rises by investing in senior secured bank loans, has raised $507m, more than double the group's initial target of $200m. The closed-ended vehicle will start trading on the main market of the London Stock Exchange on 20 April. The company will be headed up by three managers; Joe Lynch, Stephen Casey and Martin Rotheram, who will invest in 75 senior secured bank loans. The managers believe UK interest rates will rise this year and they are  therefore buying bank loans to protect the fund. Th...

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