Avenue Capital Group is looking to sell its division that oversees high yield bonds and leveraged loans within the next two months, according to a source familiar with the matter.
The division oversees $2.8 billion in assets, while the firm, as a whole, manages approximately $16.1 billion. It couldnt be determined who the potential buyers are. An Avenue spokesman declined to comment.
t also couldnt be determined why Avenue is selling its division now. However, firms like Avenue have been shedding similar assets to avoid getting hit by the forecasted wave of defaults.
Other firms to sell similar units include Cohen & Co., which reportedly sold CLOs to Allied Capital, and Cratos Capital Management, which reportedly sold itself to JMP Credit.