Navagne expertise focuses on three specific asset-classes:
Subordinated bonds is a sizeable asset class that delivers significant opportunities to achieve attractive returns despite a low-yield environment.
Subordinated bonds, dated or perpetuals, are by nature more complex than the senior debt, and offer opportunities:
- as a specific asset-class on its own, with a dynamic evidenced by the litterature on the "informed investors", and
- in relative value play against its two "neighbourgs" the senior debt and the capital instruments (capital arbitrage strategies).
Hybrid capital and Tier-1 market is a sub-category of the subordinated bonds. This asset class, with issued bonds in excess of EUR 1 000 bilions notionnal, delivers significant opportunities to achieve attractive returns in a complex landscape driven by the evolution of the economy, as well as of the regulatory framework (Basle III, Solvency II, for regulated issuers)
Hybrid capital market suffers a lack of attention and expertise. It often trades in an indiscriminately correlated way with the equities. Due to their intrinsic complexity and the moving regulatory framework, these markets particularly require in-depth technical expertise, strong contacts with issuers, regulators & investors and a careful monitoring to achieve the best returns and to reduce the risks.
Convertible bonds is another large asset class that regularly offers investment opportunities driven by the evolution of the credit spreads, the equity volatilities and the rating framework.