Structured Credit (CLOs)
- AUM $15 billion
(30 September 2019)
- 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: 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
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