US High Yield Bond Strategy

Our US High Yield Bond Strategy is managed by Nomura Corporate Research and Asset Management Inc. (“NCRAM”), a NAM affiliate.

NCRAM was established in 1991 and is an analyst-driven investment boutique that specialises in below investment-grade credit. Providing both discretionary and non-discretionary investment management services to institutional investors, NCRAM is primarily engaged in managing assets consisting of US high yield corporate bonds but also manages emerging market bonds and US leveraged loans for its clientele on a worldwide basis. 

Our “Strong Horse” philosophy

We believe a total return approach driven by credit research is the best way to generate alpha in high yield.  We describe our investment philosophy as the “Strong Horse” philosophy.  Strong Horse companies can carry their debt load through good times and bad.  These companies generally have a positive ability to de-lever their balance sheet by generating strong, positive cash flows that are sustainable.  The creditworthiness of these companies tends to increase over time, as will their credit ratings. 

Highly specialised credit boutique

Our process differentiates us through the following points:

• Creative idea generation in an open environment
• Thorough research conducted by experienced credit analysts
• Disciplined portfolio construction based on the best risk and reward opportunities

The process primarily a bottom-up approach, though top-down perspectives are incorporated.  We also characterise our process as a fundamental, as opposed to quantitative, approach.

 The Nomura US High Yield Bond Strategy is offered on a segregated basis as well as via our UCITS pooled fund.