MacKay Shields Seeking Funds For Rare Hedge Fund

  • 03 Nov 2002
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MacKay Shields Financial is seeking to raise $500 million for its long/short high-yield bond fund--a rare type of hedge fund that the firm launched September 1, according to BW sister publication Foundations and Endownment Money Management. "The environment is perfect for long/short funds because they are able to generate yield in a tough market," said Robert Nisi, managing director at MacKay Shields, which is seeking to raise assets from both domestic and international investors--especially foundations and endowments--by the fourth quarter of next year. Currently, the fund has raised slightly more than $75 million. The firm is targeting the non-profits through existing relationships and consultant contacts, and is seeking to take advantage of the high tolerance for risk and increased interest in alternative investments by non-profit funds. The funds are managed by Don Morgan, the firm's lead high-yield bond portfolio manager.

The fund would contain up to 20% in distressed debt, said Morgan. Currently, it contains about 7%. Morgan added that the current notion that there are not enough high-yield bonds available in the market is a misconception. "Most large mutual funds lend their bonds to give themselves a bit more of an incremental return," said Morgan. "We use Salomon Smith Barney's and Bear Stearns' trading desks, and we're getting a borrow on about 85-90% of the bonds we're looking to borrow.

  • 03 Nov 2002

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Share % by Volume
1 Societe Generale 13.43
2 Rabobank 12.61
3 Morgan Stanley 10.27
4 Barclays 7.86
5 Natwest Markets (RBS) 7.15

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 27 Mar 2017
1 Bank of America Merrill Lynch 18,561.02 56 11.69%
2 Wells Fargo Securities 18,160.90 57 11.44%
3 JPMorgan 12,092.45 38 7.62%
4 Citi 11,878.92 43 7.48%
5 Credit Suisse 9,276.87 26 5.84%