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RBC Offers Risky Loan Fund to Investors
4 May
Summary
- RBC BlueBay Asset Management is launching a new interval fund.
- The fund will invest in the riskiest CLO equity slices.
- This offers a public market alternative to private credit.
RBC BlueBay Asset Management is preparing to launch its inaugural interval fund. This new offering will focus on investing in the most precarious segments of corporate loan pools, specifically CLO equity. The initiative comes at a time when retail investors are increasingly pulling their capital out of private credit markets.
This fund represents a public market alternative designed to attract these investors. By targeting CLO equity, RBC BlueBay aims to provide access to potentially lucrative, albeit high-risk, investment opportunities within the corporate loan landscape. The fund's structure as an interval fund allows for periodic opportunities to redeem shares, offering some liquidity to investors.
