Structured Credit (CLOs)
- AUM $15.8 billion
(30 June 2020)
- Vehicles Available
- Separate Account
- Commingled Funds
Our structured credit investment philosophy focuses on a detailed understanding of a CLO’s underlying collateral pool and structure, as well as an emphasis on the collateral manager’s impact on performance through the investment process.
Our Value Add
As an active investor in CLOs and CDOs since the early 1990s, we have developed one of the deepest and most experienced teams in the market.
- Broad Market Perspective: Actively investing in all parts of the CLO capital structure.
- Manager of Choice: Manages more than $14 billion in structured credit, including more than $13 billion in cash flow CLOs. Barings was also named as a replacement manager for multiple structured credit portfolios.
- Proprietary Systems: CDO WorldSM, our proprietary database and portfolio management system, provides in-depth access to information.
CLOs: Looking Down the Road to Recovery
CLOs rallied in the second quarter as liquidity returned and supply/demand dynamics began to normalize. While opportunities have emerged—particularly in high-rated tranches and new issue BBs—active management is key.View
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