The manager prioritises fundamental credit analysis and active risk management—taking risk only when they believe the risk premium is compelling, and remaining disciplined when credit spreads are tight. Their focus is on consistently delivering attractive risk-adjusted returns.
According to independent analysis by CLO Research, Generate Advisors has consistently delivered outperformance against the Morningstar LSTA U.S. B/BB Ratings Loan Index on an unlevered basis in recent years. Here’s a set of interview questions from CLO Research, accompanied by responses from Rizwan Akhter, Head of Generate Advisors.
Thanks to the solid performance of the deal, no new equity capital was needed, and only a small class X tranche was added.
A sample of 1,684 US BSL CLO deals (vintage 2013–2023) is included in this study. Deals with a collateral pool...
In the 2.0 CLO landscape, it is quite uncommon to see very high cash-on-cash equity distributions. However, 42 regular reinvesting US BSL CLO deals have distributed impressive cash payments to their equity investors, with annualized payments of around 25% or more so far this year.
May 2024: Summary of CLO Research Insights
