Baldwin Berges, Head of Business Development at Silk Invest, announced the launch of a new fronteir hedge fund which invests in sovereign and corporate debt securities across Africa, The Middle East and Central Asia.
“It very likely that we are at the advent of what could be dubbed “The mother of all carry trades” and this time it is not only coming from Asia but also from Europe and the USA.” Berges said, “Developed world government debt yields are too low and commodities are looking mighty expensive.”
“We have already seen this trade unfolding in the corporate bond arena, investors will likely continue to venture out further into the wilderness of frontier markets in search of high yields. There is very little consumer and/or corporate debt. The local banking system is reluctant to lend money or lack the experience required to evaluate the risk and therefore capital adequacy ratios in the financial sector tend to be very solid.”
Hedge Fund Highlights:
Current average Yield to Maturity above 16%
Average duration of 3.4 years
High diversification: currently 65 holdings, 27 countries, 17 currencies
Luxembourg UCITSIII Fund offering weekly liquidity