Babson Eyes Debt To Boost Returns

Jan 18 2012 | 11:13am ET

Babson Capital Management finds itself drawn inexorably to credit markets, an inclination it has no plans to deny.

The MassMutual subsidiary plans to increase its multi-strategy fund's exposure to debt, fund manager William Awad said. The five-year-old fund will invest between 5% and 10% of its assets in credit.

"If you look at debt spreads versus equities, debt spreads seem attractive now compared to historical averages," Awad told HFMWeek.

Which is not to say that Babson is abandoning stocks. To the contrary, the firm plans to team with sister MassMutual affiliate Baring Asset Management to co-manage the portfolio.


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note