Palmer Square Capital Management, a credit and alternatives investment manager, has launched an ultra-short duration investment grade strategy in a mutual fund format, Palmer Square Ultra-Short Duration Investment Grade Fund (PSDSX).
Christopher D Long, president of Palmer Square Capital Management, says: "Given the lack of true ultra-short duration funds as well as the changes which have occurred with money market funds, we have had demand from our investors to access our ultra-short duration strategy in mutual fund format. We believe that the Fund offers investors a unique alternative to traditional shorter duration investments, in that, our strategy seeks low interest rate sensitivity and low spread duration yet it offers investors an attractive relative yield and a diversified source of income."
Angie K Long, chief investment officer of Palmer Square, adds: “Leveraging the deep expertise of our opportunistic credit team, we are excited to bring to market a product which utilises our competitive advantage as a firm in looking across credit for high quality, truly short-duration assets which offer attractive relative yield."
The fund will primarily invest in high quality, short-dated corporate bonds, loans, traditional ABS, and structured credit (most notably, collateralised loan obligations also known as CLOs).