CQS Total Return Credit backs 'cheap' European banks

Also focusing on dislocated spreads

The CQS Total Return Credit fund is taking advantage of dislocated spreads and opportunities across Europe, particularly within the banking sector, in efforts to exploit inefficiencies in the way capital is being allocated within the market.

Launched in early February, the fund is managed by Craig Scordellis, head of multi-asset credit, and Darren Toner, head of high yield, investment grade and financial portfolios.  It currently has £54m AUM and it has quickly deployed capital across the US and European high yield bond markets, as well as European financials, to construct a "high conviction, fairly defensive portfolio". "Our focus is on liquid multi-asset credits in developed markets," Toner told Investment Week, with a particular interest across corporate hybrids, senior and subordinated financials, convertibles and inv...