CDOs/CLOs

Baby Boomers' annuities purchases continue to fuel banks' lending to collateralized loan obligations, asset-backed securities and special purpose entities.

Dislocation funds seek gains by snapping up beat-up assets of a company whose debt prices have slumped amid market turmoil or because of industry challenges.

The securities will mainly hold dollar-denominated floating-rate loans made to US companies. The unit aims to launch the fund in January.

With borrowing costs near multi-year lows, median equity distributions for the securities reached an annualized rate of 12.1%, the lowest since 2020.

Previously, Kim was a managing director in J.P. Morgan Chase & Co.'s strategic investments group, where she managed a diverse portfolio of fintech investments.

While Anthelion's First Brands exposure is dwarfed by other creditors, the firm's investment speaks to how pervasive the company's debt became across Wall Street before its collapse.

Last week, JPMorgan CEO Jamie Dimon raised the alarm over certain corners of the credit markets might see outsized losses if the economy sours.

The five-part deal's longest portion, an 11-year fixed-to-floating rate note, yields 0.92 percentage point more than Treasuries.

The biggest portion of the transaction, the $290 million of class A-1 bonds rated Aaa, were sold to yield 1.33% more than their Secured Overnight Financing Rate benchmark.