Nikko Asset Management has raised more than €144m from Japanese clients to launch a total loss-absorbing capacity (TLAC) fund. It will invest in loss-absorbing bonds issued by European and US globally systemic banks. Further ahead, the firm will explore diversifying its offering into minimum requirement for own funds and eligible liabilities (MREL) as well.
Nikko AM has been expanding its London-based credit offering, hiring for high yield and expanding its securitizedcredit business in the past few months.
However, it sees bank credit as particularly attractive compared with corporate credit, as it foresees a longer-term trend of rising corporate leverage but falling bank leverage and improved