Avenue Capital Group, a New York-based hedge fund founded by Marc Lasry and Sonia Gardner, has decided not to sell its high yield bond and leveraged loan division due to the recent rally in the markets.

And not only is the firm not selling, it plans to increase its exposure to high yield loans and bonds.

Avenue put the unit on the block last month. An Avenue Capital spokesman declined to comment.

Since March 10, the average price of a leveraged loan has climbed more than 13 cents to 75.49, according to the Standard & Poor’s/Loan Syndications and Trading Association.

Avenue's CLOs oversee $2.8 billion in assets, while the firm as a whole manages approximately $16.1 billion.

Firms like Avenue have sold off similar assets to avoid getting hit by the forecasted wave of defaults.

Other firms to sell similar units include Cohen & Co., which reportedly sold its CLOs to Allied Capital, and Cratos Capital Management, which reportedly sold itself to JMP Credit.

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