JDV, Given the opportunity, how would I go about setting up a High Yield Fund from the ground up especially given that high yield is a new asset class for the firm? Willy

well i am not JDV, but convertarb would start with your current IB relationships and get the introductions to the sales teams for HY. but before that you need to decide what part of hy you are looking to invest in… is this outright? are you going to hedge with capital structure type arb, index hedging, are you going to trade CDS? Trade frequency… private deals? fundamental or quantitative? etc etc etc. Get the PB & sales and HY research introductions/relationships after you have decided strategy/traded hy instruments… You also need to build a team (PM(s), trader(s) and analysts). Is this internal or looking to hire external? etc etc etc

Great answer ConvertArb. I believe the mandate is to build it from the ground up and utilize internal research capabilities. As to your other very great questions I’m unsure. Willy

I’d like to answer…but I need coffee first…

Willy, Assuming you’re still working in Canada. Are you going to structure this as a public mutual fund or a pooled fund?

My guess is that it would be structured as a pooled fund. Although if I could get some dialoge around the differences that would be relevant in knowing. I really don’t know. Willy

everybody is jumping into the High Yield market these days…should be interesting to see hwo this one turns out.