Search for yield leads to new credits

Corporate bond funds are little more than a decade old, and while the growth in assets has not been ...

Corporate bond funds are little more than a decade old, and while the growth in assets has not been as great as some predicted, they still remain a significant asset class. The size of the market has not held up the development of investable assets open to funds, particularly with the arrival of Ucits III. Indeed, it would be more accurate to describe corporate bonds funds as credit portfolios because the underlying securities are increasingly not issued by corporations in the traditionally accepted sense of the word. They are packaged credits arriving in the form of CDOs, ABSs, CLOs and...