European private bank seeking to enhance its discretionary portfolios

The client, a Luxembourg-based private bank, was experiencing growing interest from its HNWI clients in credit strategies beyond conventional investment-grade bonds. Its internal investment team was stretched between equity research and fixed income management, leaving little capacity for in-depth analysis of high-yield and emerging market issuers. What the bank needed was a trusted external partner able to provide independent recommendations, accompanied by the documentation necessary for compliance and portfolio construction.

Hedgebra engaged with the bank’s CIO and product committee to define the scope: an opportunistic sleeve of high-conviction credit positions that could complement their existing core fixed income allocation. We produced a model portfolio of corporate bonds selected for relative value, credit fundamentals, and potential yield pickup. Each recommendation was supported by a concise investment note including issuer profile, key risks, and expected role in the portfolio.

The process gave the bank flexibility to adopt or scale positions depending on client appetite, without outsourcing execution or custody. Our recommendations were integrated into the discretionary mandates and also offered as model trades to advisory clients. By providing independent research and ready-to-use documentation, the bank was able to shorten its decision-making cycle, respond to client demand for higher income opportunities, and maintain a clear governance trail for its regulators.