AP Pension signs Babson for high-yield bonds

AP Pension, Copenhagen, Denmark, hired Babson Capital Management to run 1.5 billion Danish kronor ($229 million) in high-yield bonds, said Ralf Magnussen, investment director at the fund.

He said Babson was hired in the first quarter of this year in a global mandate, and the allocation was funded by selling bonds. AP Pension, which has about 103 billion Danish kronor in assets, has an existing 7 billion Danish kronor allocation to high-yield bonds, he added.

Mr. Magnussen said executives may add further to this allocation, but that no decision has been made.