Fund manager Henderson Group is set to launch its first European ABS opportunity fund to take advantage of prices in the sector. The new fund will be managed by Jim Irvine, who is head of structured products at the firm.
The fund aims to raise 250 million ($349 million) with a first close slated for July 1. The fund has a five-year life and is aiming to capture the recovery of highly-rated ABS tranches. It will target returns of between 4% and 5% a year above Euribor, the rate at which deposits in the eurozone are offered by one bank to another.