Skip to main content
The Columbia Leveraged Debt Group believes strong and consistent risk-adjusted returns in the bank loan market are best achieved through the pro-active management of credit risk combined with a strategy to seek out relative value opportunities. The Columbia Bank Loan Strategy seeks to construct a broadly diversified portfolio of bank loans that maximizes return and minimizes default risk over the long run.

Investment Approach

The investment process is primarily bottom-up, focusing on rigorous, in-house, fundamental credit research as the primary driver of performance. The research process is greatly enhanced by a team with 20-plus years of experience specifically in the leveraged loan market. In addition, the depth of resources dedicated to the bank loan team allows it to incorporate its knowledge of industry and issuer performance and behavior into credit choices and weightings. The Team’s experience, size and presence in the market have led to top-tier allocations in the primary origination market as well as strong secondary activity. They believe the most important key to success in bank loan investing is a mastery of credit skills to determine which companies will have the wherewithal to withstand a credit cycle or other financial events and employ a proprietary internal rating system to help guide position sizing.

Distinguishing Features

  • A specialized investment platform providing a distinct combination of deep resources with boutique focus and flexibility
  • Deep and stable investment team of leveraged debt specialists with active presence and longevity in the bank loan market
  • Extensive commitment to fundamental credit research and an independent, proprietary risk and relative value rating system
  • Constant focus on downside risk management
  • A commitment to client-driven, customized investment solutions and service

Investment Process

Bottom-up fundamental credit research
  • Analysts and portfolio managers partner to identify primary and secondary market opportunities
  • Research process focuses on identifying the critical credit fundamentals of each issuer
    • Analyze a company’s business prospects, its management, liquidity, capital structure and its competitive standing in the market
    • Assess collateral quality, loan-to-value coverage and conduct a review of the capital structure and relevant loan documents.
Ongoing research and monitoring
  • Review watch list
  • Industry and holdings review
  • Secondary opportunities
  • Primary market pipeline
Portfolio construction/risk management
  • Client objectives/constraints
  • Issuer and industry diversification
  • Risk rating system
  • Appropriate position sizing