A research-focused, actively-managed, US bank loans solution. We seek to exploit inefficiencies in the bank loan market and aim to provide clients with consistent excess return potential over the long term.
Our investment believe the leveraged credit market is an inefficient market that has cyclical, industry, and company-specific dislocations. These inefficiencies cause valuations to disconnect from fundamentals, providing opportunities for exploitation and monetization.
Disciplined, research-intensive process
- Based on in-depth, bottom-up credit analysis designed to identify securities with mis-priced credit and liquidity risk.
Diversified cash bond portfolio
- Focused on liquid US dollar securities rated BB to CCC.
An experienced and stable credit team
- A well-resourced, cohesive team of investment professionals with senior portfolio managers who have a long tenure of working together.
We believe long-term outperformance in corporate credit is most reliably generated by deep proprietary research to identify undervalued securities, and we focus on relative value while maintaining a technology-enhanced approach to risk management.
We leverage the expertise of the broad credit team, with research acting as the gatekeeper to the securities we hold, trading providing relative value and technical opportunities, and portfolio management setting the overall risk profile and positioning the portfolio for the prevailing environment.
Disciplined and time-tested investment approach
Macro assessment
Set the course for the secular trend but navigate intermediate cyclical events
Credit risk allocation
Determine the appropriate sizing of overall credit risk
Relative value
Spread / yield comparison versus industry peers, credit ratings, liquidity, and capital structure
Technical analysis
Deal size, buyer base, index eligibility, demand from foreign and domestic flows
Credit risk factors
Positioning across curve, quality, capital structure, and sector
Security selection
Deep fundamental credit research across the investible universe
For more information about our Credit capabilities
Risks
The value of the portfolio may fall as well as rise, and you may not receive back the amount invested.
Fixed income securities can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer's ability to make interest and principal payments on its debt. This includes prepayment risk, the risk that the principal of a fixed income security that is held by a portfolio will be prepaid prior to maturity at the time when interest rates are lower than what the security was paying. A portfolio may then have to reinvest that money at a lower interest rate.
Securities in the lowest of the rating categories considered to be investment grade (that is, Baa or BBB) have some speculative characteristics.
Liquidity risk is the possibility that securities cannot be readily sold within seven days at approximately the price at which a fund has valued them.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis, and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of the Strategy’s investments. Given the increasing interdependence among global economies and markets, conditions in one country, market, or region are increasingly likely to adversely affect markets, issuers, and/or foreign exchange rates in other countries. These disruptions could prevent the Strategy from executing advantageous investment decisions in a timely manner and could negatively impact the Strategy’s ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Strategy.
[2905373]