The team believes strong and consistent risk-adjusted returns in the bank loan market are best achieved through the pro-active management of credit risk combined with a strategy to seek out relative value opportunities. They believe the most important key to success in bank loan investing is a mastery of credit skills to determine which companies will have the wherewithal to withstand a credit cycle or other financial events and employ a proprietary internal rating system to help guide position sizing.
- Deep and stable investment team of leveraged debt specialists with an active presence and longevity in the bank loan market providing a unique combination of deep resources with boutique focus and flexibility
- Extensive commitment to fundamental credit research by a team with 20-plus years of experience specifically in the leveraged loan market.
- The team’s experience, size and presence in the market have led to top-tier allocations in the primary origination market as well as strong secondary activity.
- Independent, proprietary risk and relative value rating system and constant focus on downside risk management
- A commitment to client-driven, customized investment solutions and service
Investment ProcessBottom-up fundamental credit research
- Analysts and portfolio managers partner to identify primary and secondary market opportunities
- Research process focuses on identifying the critical credit fundamentals of each issuer
- Analyze a company’s business prospects, its management, liquidity, capital structure and its competitive standing in the market
- Assess collateral quality, loan-to-value coverage and conduct a review of the capital structure and relevant loan documents.
- Review watch list
- Industry and holdings review
- Secondary opportunities
- Primary market pipeline
- Client objectives/constraints
- Issuer and industry diversification
- Risk rating system
- Appropriate position sizing