The Allure of Structured Credit
European structured credit is an increasingly attractive option for US institutional investors seeking yield, argues Serone Capital Management’s Neil Servis

Institutional investors looking for sustain­able double digit returns should look at the structured credit securitisation market.A diversified portfolio of collateralised loan obligations (CLO) securities can achieve attractive core returns in the 7-9 per­cent range and in excess of 12 percent if combined with equity and mezzanine investments in structured credit securities. Active trading can enhance returns further.

Specialist managers offer investment funds in CLOs or can construct managed accounts tailored to an investor’s risk return parameters and differing liquidity profiles. Such portfolios would fit well into credit, alternative, opportunistic or fixed income baskets for pension funds and insurance companies.


14 September 2014