INVESTMENT STRATEGIES
Credit & Insurance
Credit investing evaluates a borrower's ability to meet its obligations and the protections available if it cannot. The source of repayment, contractual rights and position in the capital structure are central to the analysis.
Overview
A clear view of the obligation behind the capital.
The discipline spans lending to companies, financing secured by identifiable assets and investments in traded credit. Insurance investment solutions add a portfolio dimension: assets must be evaluated in the context of an insurer's liabilities, liquidity requirements and applicable constraints. Insurance portfolio investing does not mean that an investment is insured against loss.
Investment focus
Corporate credit
Financing based on a company's earnings, cash generation, debt obligations and capacity to withstand adverse conditions.
Asset-based finance
Credit supported by assets or contractual cash flows, with attention to collateral quality, servicing and recovery.
Insurance portfolios
Credit allocation considered alongside liability duration, liquidity needs, concentration and portfolio restrictions.
Capital structure
Senior secured lending, subordinated credit, asset-backed facilities and traded credit instruments. These structures carry different priorities and levels of protection; none removes the risk of loss.
Evaluation
Repayment capacity
Examine debt service, cash generation, existing obligations and the assumptions behind the borrower's plan.
Documentation & recovery
Review security interests, covenants, payment priority and the practical ability to enforce contractual rights.
Portfolio fit
Consider borrower and sector concentration, liquidity, duration and sensitivity to changing market conditions.
Risks to consider
Borrowers may default. Collateral can lose value or be difficult to realize, and recoveries may be incomplete. Interest-rate changes, refinancing pressure and illiquidity can affect both income and principal. A contractual payment obligation is not a guarantee of repayment.
Where does repayment come from, and what happens if that source weakens?
These considerations are illustrative and not exhaustive. Evaluate any actual investment using its own documents, terms and risk disclosures.
Related strategies
This profile explains the investment discipline and potential structures. It does not constitute an offering of a particular fund or investment product.