High Yield Bonds
High Yield Bonds
High yield bonds are debt securities issued by companies that typically carry a credit rating below BBB- or are unrated. Compared to investment grade bonds, they offer higher yields to compensate investors for increased credit risk. A strategic allocation to high yield bonds may enhance portfolio diversification by providing exposure to credit-driven returns that are less correlated with traditional government and investment grade fixed income markets. The asset class can also contribute to improved risk-adjusted returns, reduced interest rate sensitivity, and greater portfolio resilience across different market environments.
Mandatum's High Yield Strategies
Through Mandatum's high yield strategies, investors gain access to actively managed portfolios built on deep credit expertise and diversified yet hand-picked securities. The strategies aim to capture attractive relative value opportunities across high yield markets with focus on downside protection.
Mandatum Nordic High Yield Total Return Fund
A long-standing strategy providing exposure to a structurally distinct credit market, typically characterised by yields between global high yield and private credit, short duration, a predominantly senior secured issuer base, strong documentation standards and low correlation to global high yield markets.
The Nordic high yield market may offer a structural inefficiency premium, where Mandatum combines deep local expertise with a well-tested investment process developed across multiple market cycles.
Mandatum European High Yield Total Return Fund
Mandatum's High Yield Total Return Fund aims to outperform the broader European high yield market by identifying relative and absolute value opportunities across a broad range of high yield sub-segments. The portfolio consists of carefully selected credits and has the flexibility to invest in both publicly rated and unrated instruments, with few constraints on currency, sector, instrument or geographic exposure.