Babson Capital Closes $400M CLO

Sep 5 2012 | 10:28am ET

Charlotte, N.C.-based Babson Capital Management has added $400 million in assets to its structured credit portfolio with the closing of its latest collateralized loan obligation.

The Babson CLO Ltd. 2012-II follows its $350 million predecessor which closed earlier this year and brings the firm’s total number of  collateralized debt obligations (including CLOs) to 53, representing $17.9 billion in AUM as of June 30, 2012.

“In the wake of the global financial crisis, investors have gained a greater  appreciation for the yield, safety and stability that CLOs offer, and their confidence is reflected in the resurgence of new CLO issuance this year,” said  Russell Morrison, managing director and head of high-yield investments for Babson Capital, in a statement. “The crisis also allowed investors to see more clearly than ever the critical difference collateral managers make in the performance of a CLO.”

As with the earlier CLO, Babson CLO Ltd. 2012-II consists primarily of corporate senior secured loans with a small amount of second-lien loans and high-yield bonds.

The transaction was arranged by Citigroup.

Babson Capital is a global investment management firm with $149 billion in assets under management.

 


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.