Hedge Fund Axonic Capital to Raise $1 billion for Credit Deals

July 15, 2020 | Hedge Funds, News

Credit Funds on the Rise

Following a credit sell-off in March, Axonic Capital is looking to make a comeback through raising nearly $1 billion.  Investors are looking to capitalize on undervalued assets with this fund.  The firm was a key player in the 2008 financial crisis through its role with mortgaged-backed securities.  With its nascent fund, Axonic hopes to invest in commercial and residential mortgage-backed securities.  This is largely in response to the Covid-19 related market volatility.  


This practice is quickly becoming familiar within the hedge fund industry.  Other funds such as Baupost and TCI are looking to take advantage of this year’s market tumble.  The market has not been favorable to these funds in the macro scale, however.  Structured credit funds in particular have taken a large fall.  Additionally, Axonic’s Credit Opportunities fund was down 22 percent for the first half of this year.  The fund’s SBL fund — focusing on apartment buildings — is down 16 percent.  

Investors are expecting a spike in mortgage-backed securities and real assets, with the help of external stimulus funds.  Axonic will focus on buying bonds backed by apartments through partnerships with mortgage companies like Freddie Mac.  Axonic is a New York-based firm that currently possesses around $3.5 billion assets under management. 

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News

Venture Capital: Bill Gates-Backed, CleanTech VC Raises $1B

Breakthrough Energy Ventures (BEV) is a venture capital firm that invests in cleantech. The term describes companies (or technologies) that aim to improve environmental sustainability including the negative impact of…

Alternative Investments/Digital: The Coinshares Physical Bitcoin (BITC) ETP To Trade On SIX Swiss Exchange
January 19, 2021     Alternative Investments, Digital Assets, News

European digital asset manager Coinshares is launching a new ETP product, the physically backed CoinShares Physical Bitcoin (Ticker: BITC) on the SIX Swiss Exchange today. The ETP enables investors to…

FinTech: On Rebound From Failed Gojek Merger, Grab Mulls $2B U.S. IPO
January 19, 2021     FinTech, News

Reuters said in an exclusive report on Monday that Southeast Asian ride-hailing, food delivery, and fintech giant Grab was considering a US IPO this year. The news agency quoted three…

Artificial Intelligence: Let AI Take Over The Painful Job Of Training Your Dog
January 19, 2021     Artificial Intelligence, Latest News, News

Researchers at Colorado State University have designed an artificial intelligence (AI) system that can help train dogs when their owners are away. Such a situation may well come around soon…