Goldman Sachs Asset Management has launched a new bond fund set to target the European high yield market, Citywire can reveal.
The Luxembourg-domiciled fund will be overseen by the firm’s corporate credit investment team.
It will invest primarily in below investment grade bonds issued by companies from across the region.
Goldman Sachs AM said the launch of the fund was designed to offer investors a fixed income fund able to weather a period of uncertain interest rates rises in Europe, as well as widespread bank deleveraging.
Commenting on the launch, Nick Phillips, head of GSAM’s international third-party distribution business, said: ‘The fund is designed to access opportunities in a rapidly growing European high yield market, where structural drivers such as bank deleveraging are expected to lead to a substantial increase in issuance over the next five years.’
The corporate credit investment team comprises 72 investment professionals, as well as 28 dedicated to leveraged credit.
This leveraged credit team is currently responsible for management of the Goldman Sachs Global High Yield portfolio, which now has $11 billion in assets under management.
In addition, this team is also responsible for managing approximately $4 billion of European-domiciled high yield assets across an array of global fixed income strategies.