White Paper

Collateralised loan obligations, or CLOs, have become an increasingly popular asset class within global fixed income.

Over the past decade, private credit has grown from a $400bn niche industry into a $1.6tr market that competes with more traditional asset classes for significant investor allocations.

The term ‘fossil fuel financing’ refers to the provision of capital (including loans, investments, and other forms of capital) to companies involved in the exploration, extraction and production of coal, oil and natural gas.

As with many things ESG related, interest in, and issuance of, green bonds is growing rapidly.

For fixed income investors, it has been impossible to ignore the proliferation of press coverage about the growth of the triple-B rated corporate bond market, and a coming wave of downgrades for companies rated BBB to high yield, with these ‘fallen angels’ exposing investors to mark-to-market losses at best, and defaults at worst.

This brief paper outlines our approach to absolute return, and why we think a predominantly long-only fund can offer investors the predictability and transparency that they demand through the investment cycle.