The fund invests in corporate credit in the United States, through the purchase of CLO bonds with an international BB rating. The fund invests in CLO bonds both at the time of their issuance (the primary market) and after their issuance (the secondary market).
The fund focuses on a “buy-and-hold” strategy until maturity, and therefore invests in portfolios managed by executives who are considered Tier 1. Each CLO consists of hundreds of core assets, which are bank loans to companies with variable interest rates, usually from syndication of loans from several banks. The fund focuses on the mezzanine layers and the BB rating layer.