Jun 15, 2021

Managers Starting to Favor Interval Funds for Structured Credit Finance

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By |2021-06-22T12:53:35-04:00June 15th, 2021|

As banks have faced greater regulatory scrutiny since the adoption of Dodd-Frank in 2008, interval funds are becoming the new liquidity provider in structured credit finance. During the Alternative Credit Investing panel during the Active Investment Company Alliance’s (AICA) Interval Fund Boot Camp and Manager Spotlight on March 31, Christian Aymond, a Principal at A3 Financial Investments, noted that alternative credit assets work best in an interval fund structure, in large part because the funds do not have to offer daily liquidity.

Jun 15, 2021

Low Interest Rates and Wider Spreads Providing Greater Opportunities for Fixed Income Interval Funds

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By |2021-06-22T12:52:17-04:00June 15th, 2021|

Credit investments can be seen as an insurance policy, and the best time to make these investments is right after a great deal of dispersion and volatility in the markets, as we saw in 2020. Following last year’s market volatility, spreads are currently widest, and managers and investors are essentially paid to take on more risk right now.

Dec 17, 2020

Litigation Expected as SEC’s Ruling on Boulder No-Action Letter Limits Activism

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By |2020-12-22T12:26:49-05:00December 17th, 2020|

The SEC’s decision in May to rescind the Boulder No-Action letter, allowing a closed-end fund to opt into a state control share statute without risking an enforcement action, could have a chilling effect on activism, and could face litigation for violating the Investment Company Act.

Dec 17, 2020

Closed-End Funds Finding Investment Opportunities Despite Ongoing Market Challenges

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By |2020-12-22T09:06:05-05:00December 17th, 2020|

With the US presidential election next month, the ongoing impact of the coronavirus pandemic and the question of whether the economy is still in a recession or in a recovery, it can be tough for managers in the closed-end fund (CEF) space to navigate that uncertainty while preserving capital.

Dec 17, 2020

Goldman Sachs Eyes Real Estate Investment Opportunities with its First Interval Fund

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By |2020-12-22T09:15:22-05:00December 17th, 2020|

Goldman Sachs has added interval funds to its growing offerings of retail alternative investments. During a keynote address at AICA’s Summer Summit on August 13th, Collin Bell, Managing Director and Global Head of Client Portfolio Management for Fundamental Equity within Goldman Sachs Asset Management, said Goldman has been involved in managing money in the form of traditional ‘40 Act funds and separately managed accounts for decades, but entered the interval fund space in May with the acquisition of a real estate interval fund.

Dec 17, 2020

Managers Now Offering Term CEFs to Minimize Premium Discounts

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By |2020-12-22T09:07:40-05:00December 17th, 2020|

While closed-end funds (CEFs) have traditionally been perpetual offerings, more CEFS have term offerings that allow investors to liquidate at net asset value and minimize premium discounts.

Dec 17, 2020

BDC Industry Evolution to Favor the Largest Players

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By |2020-12-22T09:08:23-05:00December 17th, 2020|

The BDC industry will evolve toward favoring the largest players who can make use of their scale to both address more attractive parts of the market and leverage their cost bases.

Dec 17, 2020

BDC Sessions

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By |2020-12-22T09:11:54-05:00December 17th, 2020|

Following the lockdowns and onset of impacts of the coronavirus, when the stock markets went into turmoil, many business development companies (BDCs) took a step back to avoid the worst of the effects.

Dec 17, 2020

Higher Yields Spur Strong Demand from Investors for Municipal CEFs

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By |2020-12-22T09:13:23-05:00December 17th, 2020|

There has been an ongoing trend of new issuances in taxable municipal closed-end funds (CEFs), particularly from institutional and foreign investors as yields have been higher than other debt products.

Mar 30, 2020

Key Take-Aways from CEF Advisors’ Research Call

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By |2020-04-10T06:56:39-04:00March 30th, 2020|

The average closed-end fund through Friday March 20th is down around 40%. Discounts widened; NAVs and market prices both fell. NAV movements reflect both bear market pricing and a lack of trading in the market, a shortage of bids. Most funds are levered (including 90% of bond funds), and leverage magnifies results on the way up and down.

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