September 2021 | Issue 238
CLO thought leadership Sponsored by Virtus
The growing role of data in CLO management
The complexity of managing a CLO has made it as much an art as a science, but new technologies are sweeping into the market, according to speakers on a Virtus roundtable discussion.
“We held onto those triple C assets”
Vincent Ingato, Senior portfolio manager | Zais Group
One example of the conflict between qualitative and quantitative analysis was during 2020 when many loans were downgraded and triple-C assets fell in price. Managers had to choose whether to sell triple-Cs to bring their CLOs back into compliance with their tests or hold onto them.
“We don’t need AI to spit out an answer, we need to drive efficiency in data sharing”
Philip Raciti, Head of performing credit | Bardin Hill Investment Partners
During periods of heavy allocation in the loan market, combining unstructured data, like pricing updates, with structured data can be a real challenge for managers trying to work out their trading.
“It always comes back to someone who understands the credit processes”
Jon Hodges, Head of buy-side | FIS Global
Despite progress on machine learning in other asset classes, CLO management remains an art rather than a science, and FIS Global is focusing on tools to help short-circuit the iterative process.
Virtus from FIS
The credit market is growing more rapidly than other asset classes, drawing investors as they search for greater yields. But whether it’s CLOs, private debt or middle market funds, credit is an opaque asset class, making it difficult to navigate.
Virtus from FIS brings it all together. Our advanced Business Process as a Service (BPaaS) and sophisticated technology with AI and machine learning empowers our clients with scalable and sustainable front-to-back-office solutions, backed by an unbeatable service level and experts who are immersed in the intricacies of the credit market.
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Global credit funds & CLO's
September 2021 | Issue 238
Published in London & New York.
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