We have managed senior corporate loans portfolios since 2006, having demonstrated a strong credit selection track record and fund performance over a full credit cycle.

Our loans strategies are run by a separate team of loan experts located in the US and Europe.

Corporate Loans are floating-rate, senior secured debt issued by companies with below investment-grade ratings. They typically enjoy seniority in the capital structure of corporate issuers and benefit from first-lien security over the assets of borrowing companies. Corporate Loans are over-the-counter (OTC) financial instruments that pay a variable coupon, consisting of two components:  a variable base rate, which is reset periodically (e.g. every 3 months) based on the evolution of the underlying reference rate (i.e. EURIBOR / LIBOR), and a fixed interest margin (300-600 bps) that represents an extra compensation for the underlying credit risk.

Investment Philosophy and Process

Our investment strategy in Corporate Loans aims to offer attractive, stable long-term returns. We have a conservative investment strategy and a core focus on performing loans with a high level of certainty in terms of income stream and low return volatility.

Our investment philosophy is based on the following key principles:

  • Rigorous credit selection, driven by comprehensive fundamental analysis.
  • Diversification (anchored by our ability to offer funds comprised of US/European loans across all sectors).
  • Active portfolio monitoring with opportunistic portfolio repositioning and trading in the secondary market.

Our investment approach is based on the combination of both top-down and bottom-up perspectives. We believe that the key to delivering consistent superior investment performance in the loan asset class lies in managing the trade-off between risk and return.

In addition, the analysis of market dynamics and supply/demand “technicals” provides a supplementary source of alpha generation via active portfolio repositioning and optimization.

  • Global Senior Corporate Loans strategy

    Our global senior corporate loans strategy invests in loans issued to corporate borrowers from Europe and the US that are usually rated between B- and BB+-.

    Our Global Loans team has been managing senior corporate loans portfolios since 2006, having proved a strong credit selection track record and fund performance over a full credit cycle.

    We offer corporate loans in both a separate account structure as well as an open-ended Luxembourg-domiciled SIF fund, which we launched in December 2013.

    At a glance:

    • Not constrained by a benchmark
    • Well diversified portfolio across a broad range of sectors
    • Well-diversified global senior secured loans strategy investing in both US and European loans
    • Combined top-down / bottom-up investment approach exploiting inefficiencies across the global bank loans market
    • Strong loan selection track record: low default rate coupled with an objective of consistent returns
    • 15 dedicated loan experts integrated into our broader fixed income platform
    • A pioneer in Europe with unlevered fund technology and one of the leaders in European market for Global loans strategy
    • 15-year track record in managing unlevered loan funds