Skip to navigation

Structured Credit

  1. Investment Principles
  2. Investment Process
  3. Investment Strategies
  4. Why Seix for CLOs?
  5. Seix CLO Platform

Investment Principles

Our Structured Credit and Collateralized Loan Obligation (CLO) strategies rely on three key pillars:

FUNDAMENTALS
  • Bottom-up credit research
  • Top-down macroeconomic analysis
  • Holistic approach to assessing credit quality
TECHNICALS
  • Analyze supply and demand factors
  • Review comprehensive quantitative data
  • Study in-depth qualitative information
VALUATION
  • Evaluate credit price: relative to industry and non-industry peers
  • Compare current prices to relevant averages and historical ranges
  • Examine credit value: relative to “risk-free” and spread assets

Investment ProcessStructured Products Process

We have long-standing processes for investing in structured credit that has served our clients over many business and credit cycles.

1Targeted Universe

  • Focus on BB and B-rated loans
  • Liquid issues (issuer size > $100 million)

2Company Specific Research

Factors examined in all companies

  • Asset protection
  • Cash flow/Deleveraging
  • Management team
  • Liquidity sources
  • Competitive position

Proprietary industry models

  • Analysts assess company strength within context of industry expertise

3Relative Value Screen

Proprietary Industry Models

  • Receive real-time data feeds from multiple sources
  • Input from analysts’ financial projections
  • Portfolio decisions based on credit vs. price

4Diversification Principles

Preferred Characteristics

  • Positive industry fundamentals
  • Industry pricing power
  • Benign regulatory environment
  • Favorable demographic trends

High Yield Leveraged Loans: Industry Concentration

  •  2x industries that are 4% or greater in index
  • 3x industries that are less than 4% in index

5Structure Review

Analyst Reviews

  • Security structure
  • Cash flow structure
  • Position in capital structure

Recommends

  • Senior or subordinated
  • Secured or unsecured
  • Fixed or floating

6Analyst Recommendations

  • Recommendations are debated in group discussions
  • Portfolio managers make final decision across industries
  • Traders review technicals and implement strategy as soon as practicable

7Monitoring & Oversight

  • Proprietary internal database allows analysts to track company fundamentals, industry news, financial information and detailed terms of the credit agreements

The CLOs have had their final closing and are not conducting any further offerings of notes at this time.

Past performance is not indicative of future results.

Investment Strategies

The Seix structured credit platform was launched in 2006. The initial offering was the cash flow collateralized loan obligation (CLO) “Mountain View Funding CLO 2006-1, Ltd.” that closed in May 2006. Since then, Seix now manages additional cash flow CLOs under the Mountain View and Baker Street monikers.

Seix Structured Credit Platform

Product NameProduct TypeClosing DateSize ($mm)Asset Type
Mountain View Funding CLO 2006-1, Ltd.Cashflow CLO5/23/06462.5Leveraged Loans
Mountain View CLO II Ltd.Cashflow CLO12/7/06462.5Leveraged Loans
Mountain View CLO III Ltd.Cashflow CLO5/3/07508Leveraged Loans
Mountain View CLO 2013-1 Ltd.Cashflow CLO5/1/13421Leveraged Loans
Mountain View CLO 2014-1 Ltd.Cashflow CLO9/25/14515.5Leveraged Loans
Baker Street CLO II Ltd.Cashflow CLO9/15/06400Leveraged Loans
Mountain View CLO IX Ltd.Cashflow CLO6/25/15565.5Leveraged Loans
Mountain View CLO X Ltd.Cashflow CLO8/27/15415.5Leveraged Loans

 

The collateral for the CLO consists primarily of senior secured loans issued by non-investment grade corporate borrowers organized in the U.S. Most of the CLOs have a basket for senior unsecured loans, second lien loans and high yield bonds. The portfolio manager for the CLOs is George Goudelias.

The CLOs listed on this page have had their final closing and are not conducting any further offerings of notes at this time.

Why Seix for Collateralized Loan Obligations (CLOs)?

Leveraged loan critical mass

  • We launched our Leveraged Loan Strategy in 2006 and currently have $5.0 billion in leveraged loan AUM (including 7 CLOs), as well as $9.6 billion in high yield bond assets as of 3/31/17.
  • This mass creates an advantage in receiving allocations of the most desirable new issue leveraged loans

Large and visible presence in the leveraged finance market

  • We have a seasoned leveraged loan investment team that possesses deep knowledge of the industry
  • The high yield and leveraged loan team is fully integrated which ensures that we tap every source of information before investing

Focused on and attentive to downside risk and protecting principal

  • We do not "swing for the fences" through the selection of riskier loans
  • Their emphasis is crucial in an asset class that is migrating to par

We pride ourselves on extensive interaction between analysts and portfolio managers

  • This ensures that we exploit capital structure inefficiencies
  • Some other firms enforce a public and private wall between analysts that impedes information flow and crucial communication

The CLOs have had their final closing and are not conducting any further offerings of notes at this time.

Seix Collateralized Loan Obligation Platform

Seix has made a considerable commitment to its collateralized loan obligation (CLO) platform.

Investment Management

  • Portfolio Management
  • Credit Research
  • Trading

Quantitative Analysis

  • Deal Structuring
  • Monitoring & Compliance Testing
  • Trustee Reconciliation

Legal/Compliance

  • Maintain Information Barriers
  • Review Waivers & Amendments
  • Warehouse Guideline Compliance
  • Documentation/Legal Review

 

Portfolio Administration

  • Trade Processing 
  • Trade Settlements & Interest Payments
  • Cash Flow Reconciliation
  • Price Verification

Technology

  • Leveraged Loan Administration Support
  • Database Management
  •  In-House Systems Support

CLO Platform

 


The CLOs have had their final closing and are not conducting any further offerings of notes at this time.

Income Opportunities

Interested in Income Opportunities? Learn More.