Investment Strategies

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Trimaran Advisors typically invest through Collateralized Loan Obligation (CLO) vehicles. These funds allow us to securitize portfolios of loan and bond investments and enhance our return on capital by issuing debt for which they serve as collateral. Our investment objective is to maximize portfolio credit quality and interest rate spreads, while at the same time, preserving principal and performing within the confines of the CLO structure. Our typical portfolio consists of a majority of loans. Leveraged loans typically experience less market volatility than high yield bonds, and also are generally secured by assets, thereby contributing to principal preservation.


Trimaran Advisors participates in the market for senior secured syndicated term loans greater than $100 million,  high yield bonds (rated BBB or below) and credit default swaps (CDS). Our investment portfolios typically carry an average overall credit quality of B1/Ba3 Moody's rating equivalent or B+/BB- Standard & Poor's rating equivalent. This ratings category generally provides the best risk/reward combination, as well as, relatively stable returns as compared with other lower rated assets.

The markets in which we invest are large and offer considerable trading liquidity, with:

  • more than $1.5 trillion of syndicated loans issued annually
  • more than $1.2 trillion in syndicated loans outstanding
  • $17.1 billion of CDS outstanding, with a growing market for high yield CDS

Our strategy is to select and maintain portfolios of syndicated loan, high yield bond, and CDS investments which offer a balance of interest rate spreads and credit risks appropriate for CLO securitizations. We achieve this by:

  • performing rigorous credit analysis before each investment decision
  • selecting investments where the interest rate spread offers an appropriate level of compensation considering company, industry, credit structure and liquidity factors
  • investing primarily in liquid senior secured  term loans which provide a low level of volatility which is appropriate given the financial leverage of CLO securitization
  • making selected investments in 2nd lien term loans or high yield bonds where we see an attractive relative value or to enhance overall portfolio yields

Our investment activities target the following:

  • senior secured term loans in excess of $100 million
  • company borrowers with EBITDA in excess of $50 million
  • 2nd lien term loans with adequate coverage from assets, free cash flow  or enterprise values
  • high yield bonds with attractive yields and substantial trading liquidity
  • loans with appropriate covenants and other structural protections in credit documentation
Trimaran Advisors
katonah debt advisors