Sign up today for access to member-only content -- unique and timely industry insight that only Leveraged Finance News can deliver.
  • LeveragedFinanceNews.com one-month trial subscription
  • Free e-newsletters
  • Latest market data and statistics

Babson Closes Five CLOs Holding $17B


By Richard Kellerhals

March 8, 2010

Babson Capital Management has closed five CLOs previously run by Jefferies Capital Management. The five funds—Victoria Falls CLO Ltd., Diamond Lake CLO Ltd., Clear Lake CLO Ltd., Summit Lake CLO Ltd., and St. James River CLO Ltd.—represented $1.7 billion in assets under management.

CLO managers like Babson have been closing CLOs because the rally in the loan market, which produced eye-popping returns, has cooled. This has compelled some managers to take their chips and cash out. Last month, Highland Capital Management closed the CLO Value Fund I, which had provided a 138% return to investors.

Babson assumed management of the five CLOs in November, however, several members of Jefferies’ staff continued to be involved with the funds. They included portfolio manager Mark Senkpiel, Director Kimberly Atkinson, and Associate Director Alyssa Tabora.

Since 2003, Babson Capital has been named replacement collateral manager for 21 CLOs with a total of nearly $6.5 billion under management. Babson created its first structured fund in 1991 and managed 60 CDOs totaling $22.1 billion in structured credit assets as of Jan. 31, 2010.


For more information on related topics, visit the following: