Asset Class
Leveraged loans are bank loans granted to companies, usually for supporting strategic acquisitions and Leveraged Buyout (LBO) transactions. Resulting in a higher leverage for these companies, these financial instruments are part of the sub-investment grade universe and their value is mostly dependent on the ability of the contracting company to generate cash flows and refinance their debt. Leveraged loans stand as the most senior assets in the capital structure and usually feature various covenants giving loan holders the option to control a defaulting company, leading to a relatively higher recovery rate. Combined with the fact that these instruments enable exposure to private companies, they prove to be a powerful portfolio diversification tool.
Team
The Leveraged Finance team includes portfolio management, dedicated research, trading, monitoring and structuring professionals. As an early entrant on the European leveraged finance market, the team has developed a critical mass in terms of assets under management and excellent sourcing capacities, as well as best in class risk management processes. The team’s investment style is based on fundamental credit research as well as relative value and active trading, and seeks to control the downside risk by weighing portfolios in the more attractive areas of the leveraged loan market. Overall, the team seeks repeated performances through economic cycles.
Products
The Leveraged Finance team's products are designed and managed to deliver consistent returns across credit cycles and can be packaged according to the needs of investors. The team currently manages assets within Collateralized Loan Obligations (CLOs), funds (closed or open-ended) and mandates. Depending on their objective, investors can select amongst products which are leveraged or not, as well as mark-to-market or cash flow driven products. Investors wishing to allocate significant amounts to leveraged loans can consult with the Leveraged Finance team for setting up dedicated investment mandates or funds.
Team Leader
Jean-Philippe Levilain
