Bank Loans & CLOs

Leveraging our experience as a standalone CLO manager, we use our insights and expertise to give our bank loan portfolios an edge. 

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Understand our approach to bank loan management

Aegon AM US has managed leveraged loans since the late 1990s, taking advantage of market inefficiencies as we focus on bottom-up security selection and actively adjusting allocations around market inflection points. Our experience ranges from managing leveraged loan portfolios to collateralized loan obligations (CLOs). 

 

We use a credit-intensive process with a relative value-oriented and opportunistic total return management style. Utilizing a disciplined process, we focus on assessing downside risk and capturing upside potential. Overall, the team aims to mitigate risk and uncover opportunities as they navigate market inefficiencies to pursue consistent results. 

Mindset behind the management

Our bank loan portfolios are managed with the belief that: 

Security selection drives returns.

Requiring a multi-faceted research process that combines industry expertise with dedicated distressed and loan research capabilities. 

Dislocation creates opportunity.

Top-down market insights may provide an edge for bottom-up security selection when active managers oscillate risk and rotate sector allocations at market inflection points.  

Diversification helps mitigate risk.

To effectively manage liquidity and market risk, we believe a portfolio must be diversified across a number of issues, industries and credit tiers. 

The ’CLO’ difference.

 

We have been a standalone CLO manager since 2000, launching nearly 20 CLOs over this time. Our significant participation in the CLO market gives us a differentiated perspective on how CLOs will behave given market movements and the impact they could have on the overall loan market. Given CLOs dominate the leveraged loan space, we are aware of the various constraints CLO managers may face and the material impact this could have on the market. As a result, we position our non-CLO portfolios to take advantage of inefficiencies caused by CLO investor behaviors – an informational advantage many bank loan managers do not have.