Neuberger Berman: The investment case for subordinated securities: Five managers’ views

Julian Marks, manager of Neuberger Berman’s Corporate Hybrid Bond fund, believes that in the case of hybrid bonds, “spreads more than compensate for the subordination; even after factoring in a premium for that risk”. Moreover, he notes in Fund Strategy that hybrids often slip through the gap in traditional fixed income coverage.

Link

top