Disco fever: Man GLG finds value in forgotten bank debt

Chris Huggins and Andrew Freestone from Man GLG look at opportunities in legacy bonds which have stayed alive

2016 saw some investors in one of the world’s largest bank’s debt getting paid an IRR of over 200%. It might sound unrealistic that such returns were available for debt from a well-covered blue-chip bank, but the issue in question was an example of an ‘off the run’ legacy bond,