- Advertisement -
- Advertisement -

CABA Flexes Up with New Launch

- Advertisement -

Stockholm (HedgeNordic) – The yield spread between Scandinavian mortgage and government bonds reached levels observed during the financial crises of 2008 and 2011. Copenhagen-based fixed-income specialist CABA Capital is launching a new fixed-income fund, CABA Flex, to capitalize on the current elevated and attractive spreads.

“CABA Capital is launching a new fixed-income fund with an expected return over three years of 40-50%, gross of fees,” announces the Danish fixed-income boutique. “The last year’s major changes in the bond markets have led to significant opportunities to create very attractive returns,” explains CABA Capital, founded by CIO Carsten Bach (pictured) in 2016. “The interest rate difference between mortgage and government bonds is so significant now, that it can only be compared to the levels during the financial crises of 2008 and 2011.”

“The last year’s major changes in the bond markets have led to significant opportunities to create very attractive returns.”

This presents “a unique opportunity” for investors to capture attractive returns from the asset class. “There is a window of opportunity right now – but we know from experience that this window will close again” as spread levels tighten, according to CABA Capital. CABA Flex seeks to generate returns by exploiting the interest rate difference between Scandinavian mortgage and government bonds. The fund will invest in bonds with a remaining duration of less than five and a half years.

The opportunity-grabbing fund is expected to operate for three years, with its bond portfolio expected to be sold off after three years to realize returns before the fund’s liquidation. The fund’s operating life can be extended by an additional two years until the maturity of the bonds if deemed profitable, conditional upon reaching an agreement with investors.

close

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

January: Mirror Image of 2022 for Nordic CTAs

Stockholm (HedgeNordic) – The average return of the eight “CTA” constituents of the Nordic Hedge Index that had positive performance in 2022 was 14.4...

Did Energy Prices Cause This Inflation Surge?

Copenhagen – (Jesper Rangvid): You often hear that soaring energy prices, caused by supply-chain disruptions resulting from the pandemic and the war in Ukraine,...

UB Launches Forest-Focused PE Fund

Stockholm (HedgeNordic) – United Bankers is launching a private equity fund investing in forest and bio-based industries. The fund, named UB Forest Industry Green...

Origo’s First Ten Years on (a) Quest

Stockholm (HedgeNordic) – Long/short equity fund Origo Quest is celebrating ten years of bargain hunting in the universe of Nordic small-cap stocks. After a...

The Cycle is Back and so is Active Investing

Stockholm (HedgeNordic) – The relationship between equities and bonds has traditionally been inverse, making bonds a leading choice as a diversifier to an equities...

Alcur’s Third Win in a Row

Stockholm (HedgeNordic) – Alcur Fonder’s first hedge fund, Alcur, has been named “Hedge Fund of the Year” by Swedish business magazine Privata Affärer for...

Latest

Most Popular This Week

Voices

Request for Proposal

- Advertisement -