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Key documents
Objective
An opportunistic strategy representing our most compelling ideas in the securitized credit market.
Fund specific risks
For further terms related to the objective, investment policy and overall risk and reward profile please refer to the prospectus.
- Structured Credit Securities Risk: The obligations associated with these securities may be subject to greater credit, liquidity and interest rate risk compared to other fixed income securities such as government issued bonds. Structured Credit Securities are often exposed to extension and prepayment risks that may have a substantial impact on the timing and size of the cash flows paid by the Structured Credit Securities and may negatively impact the returns of the Structured Credit Securities.
- Convertible Securities Risk: Investments in convertible bonds may, in addition to normal risks associated with bonds, be subject to fluctuations in response to numerous factors, including but not limited to: variations in the periodic operating results of the issuer; changes in investor perceptions of the issuer; the depth and liquidity of the market for convertible bonds; and changes in actual or forecasted global or regional economic conditions. In addition, the global bond markets have from time to time experienced extreme price and volume fluctuations.
- Investment in Unlisted Securities Risk: The Fund may invest in unlisted securities. Because of the absence of any trading market for these investments, it may take longer, or may not be possible, to liquidate these positions. Accordingly, the ability of the Fund to respond to market movements may be impaired and the Fund may experience adverse price movements upon liquidation of its investments.
- Liquidity Risk: Reduced market activity or participation and increased market restrictions or impediments may result in greater liquidity risk. During extreme market conditions securities that would normally be liquid may become more illiquid. It may be difficult or Shareholders to collect redemption proceeds in a timely manner.
- Short selling Risk: A short sale creates the risk of an unlimited loss. There can be no assurance that the security necessary to cover the short position will be available for purchase. Purchasing securities to close out the short position can itself cause the price of the securities to rise further, thereby exacerbating the loss.
- Derivatives Risk: The Fund may utilize both exchange-traded and OTC derivatives, including, but not limited to, Total Return Swaps, futures, forwards, swaps, options and contracts for differences. These instruments can be highly volatile and expose investors to a high risk of loss, and particularly so to the extent uncleared.
For share class information, please contact marketing@bluebay.com
Investment Approach
- Well experienced team managing c$5bn in securitized credit across a range of products
- Focus on relative value approach with a strong margin of safety that targets opportunities with specific catalysts
- Fundamental first investments, with a credit intensive process focussing on reviewing quality of underlying collateral
- Focus on total return while balancing ethos of downside protection
Market opportunity
Securitized credit is a large multi-trillion dollar asset class that offers exposure to a diverse range of real assets with varying risk and return profiles
Risk adjusted yields in asset-backed securities compare favourably to other areas of fixed income; the basis between securitized credit and corporate credit has increased markedly over the last few months
We tactically invest where we have high conviction on a justifiable upside from specific catalysts relative to implied credit risk
Exploit supply-driven dislocations based on inelastic forced issuance in Primary markets coinciding with a weaker market environment leading to specific opportunities for investors who are active across the risk spectrum
Securitized credit bonds are backed by observable collateral with predictable cash flows and often have a lower correlation to other risk assets which makes it an attractive investment for global portfolios
Sid Chhabra
Managing Director, Head of European High Yield, Securitized Credit and CLO Management, BlueBay Senior Portfolio Manager
Sid is Head of European High Yield, Securitized Credit and CLO Management, and a BlueBay Senior Portfolio Manager within the team. Sid joined BlueBay Asset Management (which is now part of RBC Global Asset Management) in June 2018 and has over 19 years of credit, securitized credit and CLO experience, having been involved in the securitized credit markets from the earliest stages of issuance. He was most recently a London-based Managing Director, responsible for securitized credit and CLOs, at Anchorage Capital Europe, a USD15 billion alternative investment manager. Prior to Anchorage, Sid was part of the Securitized Credit/CDO Group, EMEA, at JPMorgan where he was involved in originating, structuring and investing in securitized credit products. Sid holds a BTech from the Indian Institute of Technology, Madras (IITM) and an MS from the London School of Economics.
Tom Mowl
BlueBay Senior Portfolio Manager, Securitized Credit & CLO Management
Tom joined BlueBay's Securitized Credit and CLO Management business in April 2021. Tom has over 14 years of structured credit investing experience and before joining BlueBay Asset Management (which is now part of RBC Global Asset Management) was most recently a Senior Portfolio Manager at CIP Asset Management, managing US and European asset backed securities. Prior to this, he held a similar position at WyeTree Asset Management, a specialist ABS investment boutique, where he was the Portfolio Manager. He started his career at Solent Capital Partners as an ABS Analyst. Tom is a Chartered Financial Analyst, holds an MSc Financial Mathematics with Distinction from Warwick Business School and has a BSc (Hons) Mathematics and Physics from the University of Warwick.
A heritage rooted in alternative investments
For over 20 years we have responded to client demand, building a compelling range of long-only investment strategies enhanced by our expertise in derivatives whilst continuing to deliver the highly specialist long-short capabilities of our boutique beginnings.