Barings manages over $15.1 billion in structured credit. A dedicated team of 12 investment professionals is focused on manager performance, underlying portfolio credit quality and structure.
Structured Credit (CLOs)
AUM: $13.8 billion (31 March 2020)
As one of the longest-tenured investors in the market, Barings has developed unique capabilities in understanding and identifying opportunities in global structured credit markets.
CLOs: Volatility Continues, But Value Opportunities Emerge
As macro volatility continued to pummel markets throughout the first quarter, CLOs felt the effects—with dramatic price moves among tranches as investors clamored for liquidity. But we believe that those who invest with an active manager and take a long-term view will benefit.View
Are CLOs Unfairly Vilified?
Despite the late-cycle environment, we believe the recent negative headlines on CLOs are somewhat overstated, and do little justice to the many benefits of the asset class—which has delivered impressive risk-adjusted returns and low defaults over time.View
Risk-on, Risk-off & Repeat
Sentiment continues to swing back and forth in the collateralized loan obligation (CLO) market, but bifurcation remains the constant.View
CLOs: When Technicals Create Opportunity
Taryn Leonard and Melissa Ricco, Co-Heads of the Structured Credit investment team, discuss where they're seeing opportunities and risks today—and why technical factors are creating inefficiencies, and hence opportunities, in the current environment.View
CLOs: Triple C's and Market Unease
Taryn Leonard and Melissa Ricco, Co-Heads of Barings’ Structured Credit Investment Team, discuss the recent loan market weakness, and how technical pressures are creating value opportunities in the CLO market.View
IG CLOs: Strong Excess Return Potential, Lower Volatility
IG CLOs can offer investors the benefits of spread pick-up and lower mark-to-market volatility, largely due to underlying collateral performance and structural security. But above all, manager selection is critical—even at the highest-rated tranches.View
Structured Credit: Engaging Risk Tactics
Deal flow remained steady in Q3, keeping primary market spreads range-bound. Against a backdrop of low global interest rates, we have seen increasing investor interest in European CLOs.View
Fixed Income: Upending the Conventional Approach
Michael Freno, Head of Global Markets, shares his view on where value can still be found in fixed income, despite the uncertain current environment—and why investors may need to look beyond traditional indexes in high yield, investment grade and emerging markets debt.View
Structured Credit: AAA Spreads Trend Lower as Tranches Price Tighter
As spreads tightened and managers successfully syndicated AAA tranches, CLOs gained positive traction in the second quarter.View
Structured Credit: Receding Headwinds Support CLO Performance
CLOs rebounded in the first quarter as credit concerns receded. Lower interest rates may drive continued interest in the asset class moving forward.View