We aim to capitalize on market opportunities by utilizing an opportunistic strategy that seeks to generate a sustainable earnings stream over a long-term horizon for our shareholders.
Our primary investment objectives are to generate attractive current yields and risk-adjusted total returns for shareholders.
We seek to attain these objectives by constructing and actively asset managing a portfolio of corporate CLO tranches, primarily mezzanine debt and equity tranches, which are typically collateralized by portfolios consisting primarily of non-investment-grade, senior secured, floating rate corporate loans with a large number of discrete underlying borrowers across various industry sectors. We plan to invest principally in CLOs where the majority of assets that the CLO vehicle owns are floating rate, senior secured leveraged corporate loans. Why CLOs?
We invest in multiple parts of the CLO capital structure, principally mezzanine debt and equity tranches. Rather than focusing only on short-term current yield, we select investments that we believe will provide a strong total return to drive a sustainable earnings stream over a long-term horizon. We also take a trading-oriented approach, which seeks to take advantage of pricing inefficiencies in the CLO market, as opposed to simply “buy-and-hold.”
Additionally, we may also invest in other related securities and instruments that are consistent with our investment objectives, including senior debt tranches of CLOs, loan accumulation facilities and securities issued by other securitization vehicles, such as collateralized bond obligations (CBOs).