Post Advisory Group has launched a collateralised loan obligation business, tapping Bill Lambert, formerly the Alcentra Group’s head of US loans, to run the business, the firm said in a statement on Tuesday.
While at Alcentra, Lambert oversaw $8 billion in senior loan assets, half of which were from CLOs, Los Angeles-based Post said. Other investment products currently offered by the firm, which manages $17 billion, include multiple high yield strategies and a senior loan group.
“Adding CLO management capabilities to our platform is a natural extension of our existing investment strategies,” Henry Chyung, Post’s chief investment officer, said in a statement.
The CLO market has been humming along this year, with new issuance through August surpassing $72.25 billion, matching last year’s issuance with four months left in the year, according to Thomson Reuters monthly data on the leveraged loan market. Last month, CLO refinancings reached $8.6 billion and reset activity reached $6.2 billion. This year, refinancings and resets combined have reached $120 billion.
The largest CLO this year, and the biggest deal since the financial crisis, was a $2.1 billion CLO from Antares Capital. The largest deal to date in the second half of the year was a CLO from CBAM CLO Management for $1.57 billion, while Ares Management’s Ares 44 was the second largest deal at $1.12 billion, the Thomson Reuters figures showed.