SEB Credit Opportunity - SEB Credit Opportunity IV HNWC SEK (0P00018UZ8)

Overview

The investment sub-fund is designed to seek a high risk-adjusted return on capital through diversified and active management. It primarily targets investments in various forms of debt issued by banks and insurance companies, as well as corporate bonds, with a focus on those not carrying investment-grade ratings. The approach includes investments in subordinated and junior subordinated bonds, alongside exposure to credit derivatives, to achieve its objectives.

Products and Services

• Junior Subordinated Bonds

  Investments focus on additional Tier 1 bonds and legacy Tier 1 bonds issued by banking and insurance institutions. These bonds rank below other types of debt in terms of claim on assets, offering higher yields in exchange for higher risk.

• Subordinated Bonds

  The sub-fund invests in additional Tier 2 bonds and legacy Tier 2 bonds, also issued by banks and insurance companies. These bonds are positioned below senior debt but above equity for asset claims upon liquidation, seeking to balance risk and return.

• Credit Default Swaps (CDS)

  To achieve similar underlying exposure to subordinated bonds, the sub-fund may invest in single-name CDS. These derivatives allow the fund to speculate on or hedge against the default of a bond issuer, enhancing flexibility in risk management.

• Corporate Bonds

  The sub-fund actively seeks to invest in corporate bonds, prioritizing those with non-investment grade ratings. High-yield bonds offer the potential for higher returns compared to investment-grade securities, aligning with the fund's high risk-adjusted return objective.

• Credit Derivative Indices and Single Name Credit Derivatives

  In addition to direct bond investments, exposure to non-investment grade corporate bonds may also be accomplished through credit derivative indices or single-name credit derivatives. This method offers diversified risk exposure and enhanced return potential.

• Corporate Hybrid Bonds

  The fund extends its investment scope to include corporate hybrid bonds, which are subordinated securities combining features of both debt and equity. These instruments provide flexibility in terms of capital structure and may offer tax benefits, contributing to the overall investment strategy.