Hedge Fund Inside Biggest Norway Bank Reveals Junk Bond Bet

Inside the biggest bank in Norway, a hedge fund is going over the bond issuers that lost their investment-grade status during the Covid crisis.

One of the strategies at DNB ASA’s Multi Asset fund is to identify so-called fallen angels and place bets on those that appear to have been unfairly demoted to high yield earlier this year.

“It’s a strategy that picks up risk premia in the fallen angels segment,” Anette Hjerto, who runs the fund from Oslo, said in an interview. “There will be good opportunities going forward after what has happened during the corona pandemic...”