CHARLOTTE, N.C.--()--Babson Capital Management LLC, a global investment management firm with $149 billion in assets under management and operations on four continents, today announced that it has added $400 million in assets to its structured credit portfolio with the closing of Babson CLO Ltd. 2012-II.
“The crisis also allowed investors to see more clearly than ever the critical difference collateral managers make in the performance of a CLO.”
The new issue follows Babson CLO Ltd. 2012-I, a $350 million CLO that closed earlier this year. The issuance of Babson Capital’s second CLO in 2012 brings the total number of collateralized debt obligations (CDOs), including CLOs, managed by Babson Capital 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. “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 Babson CLO Ltd. 2012-I, collateral underlying 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, which also served as lead arranger on CLO-2012-I.
As one of the world’s largest CLO managers by assets under management1 as well as one of the world’s largest global high-yield loan managers, Babson Capital leverages platform scale, proprietary investment tools and the combined expertise of investment professionals on its Structured Credit and Global High Yield teams to understand, analyze and capture the risk premiums offered by CLOs.
1 Creditflux (as of June 30, 2012)
About Babson Capital
Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have $149 billion in assets under management as of June 30, 2012. Through proprietary research and analysis and a focus on investment fundamentals, we develop products and strategies that leverage our broad array of expertise in fixed income, equities, alternative, structured products, debt financing for corporations and debt and equity financing for commercial real estate. Headquartered in Boston, the firm’s subsidiaries include Cornerstone Real Estate Advisers LLC in Hartford, Conn., and Wood Creek Capital Management, LLC in New Haven, Conn. Babson Capital is a member of the MassMutual Financial Group and is on the web at www.BabsonCapital.com.