Lyxor announces the launch of an ETF that offers investors access to EUR-denominated corporate bonds with the highest sub-investment grade credit rating in order to offer a potential higher yield.
The Lyxor iBoxx EUR Liquid High Yield BB UCITS ETF was listed on Euronext Paris on the 23rd April 2015 (Bloomberg Ticker: HYBB FP - ISIN LU1215415214) and offers exposure to the Markit iBoxx EUR HY Corporates BB Top 50 Total Return Index.
This index is composed of the 50 largest and most liquid corporate bonds issued in Euro and rated on average sub-investment grade (BB- to BB+ from Fitch and Standard and Poor’s and Ba3 to Ba1 from Moody’s).
In the current low yield environment, fixed-income investors are seeking investment opportunities able to generate adequate return. The selection of sub-investment grade corporate bonds aims to generate higher returns; credit rating criteria applied to the underlying index’ components offer exposure only to the highest rated issuances within the sub-investment grade universe (each security needs to be rated BB- / Ba3 or better by at least two-thirds of the available ratings in order to be eligible).
Lyxor is one of the leading ETF providers on fixed income with combined assets under management of 9 bn EUR and a comprehensive range of investment opportunities [1].
