IOOF cracks syndicated loan market
IOOF’s network of advisers will gain access to Australia’s syndicated loan market following its $75 million investment into the Metric Partners Diversified Australian Senior Loan Fund.
Increased bank funding and greater regulation following the global financial crisis (GFC) has increased the cost of bank lending and created market opportunity for non-bank lenders in the syndicated loan market - previously only accessed by local and international banks, IOOF said.
Metric Credit Partners provides exposure to syndicated loans to private and public Australian companies, across the full credit spectrum and across industries and loan products.
IOOF chief investment officer Steve Merlicek said the syndicated loan market would provide IOOF Multimix with stable, cash-yielding investments diversified across senior loans.
IOOF portfolio manager, strategy and fixed interest, Stanley Yeo said the market had a lot of attractive features for the fixed income investor.
“For example, these loans are priced over bank bills so they have negligible duration risk, and these corporates are in good financial health as they have de-levered considerably since the GFC,” he said.
Metrics Credit Partners Graham McNamara said the Multimix portfolio demonstrated an ability to identify value on a risk-adjusted basis across the corporate fixed income and credit markets.
“Australian investors have been starved by banks of genuine local corporate fixed income and credit opportunities until now,” he said.
Recommended for you
AZ NGA’s CEO has unpacked how its recent $345 million debt facility from Barings will accelerate its advice network’s growth ambitions, and allow its largest firms to access a greater source of funding.
Research by Colonial First State has found women are reluctant to make retirement preparations, despite 62 per cent saying they feel that they are unable to achieve a comfortable retirement.
Managed accounts saw net inflows of $14.3 billion in the six months to 31 December, according to the latest IMAP FUM census.
The increased bids for Insignia from Bain and CC Capital value the company at $3.3 billion, while there is still a possibility for competing bids from rival players such as Brookfield.
