XAIA Reopens Fund as Credit, Equity Diverge Amid Market Stress

XAIA Investment GmbH plans to re-open a fund to capitalize on global dislocations between equity and credit markets.

Munich-based XAIA is seeking to raise €250 million ($246 million) to make so-called capital structure trades, which use credit-default swaps and stock options to profit from price differences between asset classes. The fund aims for returns of 10% after 12 months by arbitraging discrepancies between securities issued by the same company.

The reopening comes as investors seek to capitalize on a violent repricing in global markets amid rising interest rates and surging inflation. The fund was previously open for several months in ...