INVESTMENT PROCESS
Proprietary “CLO Analyzer” enables rapid, yet thoughtful responses (typically 10 to 30 minutes) to opportunities. Pricing deals quickly increases our ability to exploit mispricings. The CLO Analyzer maintains and updates critical information on over 800 CLOs.
Disciplined four step process:
1
Sourcing and Screening
Real-time maintenance/monitoring of proprietary database of over 800 CLOs.
Focused on vintages with substantial reinvestment windows remaining.
Monitor all BWIC processes and independently evaluate collateral quality.
2
Initial Valuation
Review trustee reports.
Build proprietary models of subject securities & comps.
Evaluate collateral quality, manager profile, initial valuation/pricing.
Communicate pricing guidance to dealer/seller representative.
3
CLO Analyzer Cash Flows & Final Valuation
Slice & dice collateral and confirm deal structure/terms.
Refine assumptions on haircuts/implied losses, CDRs.
Set up deal and all relevant data on the CLO Analyzer and generate final cash flows and price/yield table.
Final feedback & negotiation with dealers.
4
Negotiation & Execution
Finely-tuned analysis of where deals should trade and where they will get bid.
Know-how to target value with bidding.
