Babson Capital manages a number of CDO Funds in which the underlying assets are themselves CDOs. We also have several separate account mandates where clients have hired Babson Capital to manage portfolios of CDOs. We can structure Funds where we invest in equity tranches, debt tranches or both.
Credit Intensive Focus
- In-depth knowledge of the major asset classes included as underlying assets in CDO transactions, such as high yield bonds, emerging markets fixed income, syndicated loans, and investment grade bonds
Analytical Ability
- Extensive analytical expertise with respect to CDO securities
- Dedicated systems, such as the proprietary CDO WorldSM, to analyze and evaluate CDO structures
- Resources dedicated to monitor CDO securities, including the underlying asset credit and concentration risks
Knowledge Of Structures
- In-depth knowledge of CDO structures gained from experience acting as portfolio manager for more than 30 distinct CDOs
- Client accounts currently own over 200 different tranches in non-affiliated CDOs across more than 110 different issuers and over 50 different collateral managers
Access to Markets
- Babson Capital has wide experience in the primary and secondary markets accumulating CDO securities for portfolios, which it manages, and a range of dealer contacts with whom to buy and sell securities
Investment Philosophy - CDO Securities