MFS launches euro fixed-income fund to capture rising bond yields

What's the deal? MFS Investment ManagementDealroom has a profile for this one. Try Dealroom → has launched the Euro Opportunistic Bond Fund, a new fixed-income fund aimed at capitalising on rising sovereign debt yields. It will invest mainly in high-quality public and corporate debt denominated in euros.

What's the strategy? Managers can also move into higher-yielding segments — high-yield debt, emerging market debt, and securitised debt — when they judge valuations to offer "attractive opportunities." The approach gives the fund flexibility to shift across credit quality.

Why now? MFS is timing the launch to a market it sees as unusually favourable for the asset class. "We have seen strong demand from clients and, today, the market offers attractive yields alongside high-quality credit," said Matt Weisser, managing director for Europe (translated from Spanish).

Weisser added that MFS was "delighted to continue strengthening our European fixed-income offering at a time we consider especially attractive for this asset class."

The bigger picture: This is the second fund MFS has launched this year dedicated to European fixed income, and the third in its portfolio. Globally, the firm runs 12 actively managed fixed-income funds for wholesale and retail clients.

The signal: Higher rates have made bonds attractive again after years of near-zero yields, and asset managers are racing to roll out income products. MFS's back-to-back European launches show where it expects demand to concentrate.

Read more: forbes.es

Image credit: alf.melin