Thursday, 31 July 2014
Last updated 10 hours ago
Oct 14 2010 | 10:16am ET
Brevan Howard Asset Management is preparing to launch a structured credit hedge fund that will be listed on the London Stock Exchange.
The London-based firm, now Europe’s second-largest hedge fund following the Man Group’s acquisition of GLG Partners, plans to list the vehicle in December. Underwriters are expected to be appointed this week, the Financial Times reports.
Brevan has not set a target size for its third listed hedge fund vehicle. Money raised by the fund will be invested in Brevan’s existing credit fund, Catalyst, which has returned 4.2% this year after rising 34.8% last year, its first. Catalyst manages US$1 billion in mortgage-backed securities and other complex debt instruments.
The fund is headed by former Morgan Stanley structured credit chief David Warren.
“If there is money to be made anywhere in the market at the moment, it is in structured credit because it is still hated,” Brevan CEO Nagi Kawkabani told the FT. “There are still massive stresses and dislocations in the US markets. There are more than $100bn of structured credit securities in the hands of banks and investors that don’t want them any more, but there hasn’t been the capital to get them out.”
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…