Print this page Investment Process

Generate Investment Ideas
  • New Issue Flow
  • Secondary Market

- Analysts review their industries

- Portfolio Manager highlights the opportunity

- Independent subscription services

Review and Analyze Finanacial Statements
  • Sources

- Company Website

- Company 10Qs and 10Ks

- Edgar

- IntraLinks / Syndtrak

- Dealer / Prospectus

- Independent Research Firms

  • "Bottom-up" Credit Analysis
Analyst Builds Financial Model
  • Emphasis on

- Cash flow generation

- Operating cycles of company

- Competitive position

- Collateral package

- Covenant protection

- Asset Coverage

  • Meeting / Call with Management

- New issue roadshow, quarterly conference calls (live or archived) and conferences

- On-site visits

  • Additional Due Diligence
Investment Committee Dialogue
  • Portfolio Manager and Director of Research always attend
  • Analyst presents collected information and analysis
  • Extensive questioning by Committee members
  • A consensus is reached usually, or Portfolio Manager(s) and Director of Research decide whether to

- Proceed, decline, or postpone until questions are addressed

Trade Execution
  • Portfolio Manager(s) decide whether the investment complies within CDO requirements
  • Pricing and relative value are assessed
  • Second signature is acquired from Portfolio Manager or Director Research
  • Trade ticket is verified by collateral administration and is processed