Broadly Syndicated Loans

Our Tradable Credit strategy is a research-driven approach to credit investing combined with proactive trading investing in the non-investment grade credit market, particularly in secured bank loans, structured credit and high-yield securities. This investment philosophy is executed in two strategies: collateralized loan obligations (CLOs), and total return strategies.

Investment Approach

Our objective is to provide investors with differentiated exposure to the leveraged finance markets, creating total return through a systematic approach to managing credit risk. We seek to add value across various economic, credit and industry cycles.

Competitive Advantages

  • Long tenured investment team

    The Tradable Credit Team is one of the oldest and most experienced bank loan managers in the leveraged loan space.] The individuals on our Tradable Credit Investment Committee have, on average, over 30 years of experience managing bank loans. We believe this depth of experience across economic and credit cycles offers valuable perspective and investment insight.

  • Proprietary LCAP Credit Scoring System

    Our in-house built quantitative framework utilizes cash flow modeling, credit and collateral scoring, risk management and information monitoring.  We believe that this proprietary scoring system helps us to generate differentiated views on credits and industries.

  • Analyst coverage by industry

    Credit analyst team organized by industry allowing for deep knowledge around industry trends and the competitive landscape. We seek to keep our credit issuer to analyst ratio low to allow for deeper analysis of credits.

  • Dynamic Portfolio Management and Trading Style

    We are continually seeking out new alpha opportunities through market and credit analysis as well as identifying trading anomalies. We believe a dynamic approach to trading is a significant variation from other loan managers.

  • James Fellows

    CIO of FEAC, Head of Tradable Credit Team

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  • Michael A. Herzig

    Senior Managing Director, Head of Business Development

    Industry start:  
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  • Robert Hickey

    Senior Managing Director, Deputy Chief Investment Officer – Tradable Credit

    Industry start:  
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  • Steve Krull

    Managing Director, Portfolio Manager and Head of Trading

    Industry start:  
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  • Brian Murphy

    Senior Managing Director and Head of Capital Markets

    Industry start:  
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Our Process

The investment team utilizes a multi-dimensional approach considering both top-down and bottom-up analysis to identify investment opportunities.

FEAC’s Tradable Credit platform employs an intensive research driven approach to credit investing combined with proactive trading.  The investment team utilizes a multi-dimensional approach considering both top-down and bottom-up analysis to identify investment opportunities.
Top-down macroeconomic analysis of the business cycle and industry trends allows us to identify our favored industry groups and sectors. Conducting industry reviews regularly, coupled with continual monitoring of the market are a critical component to portfolio construction and our understanding of industries and business on a relative basis. Relative value is an essential part of our investment diligence and Investment Committee approval. Relative value is determined in a variety of ways. including comparisons of opportunities available in the same asset class, portfolio companies in similar industries, and across the capital structure.
Comprehensive bottom-up fundamental credit analysis is done through our proprietary LCAP Credit Scoring System provides a common framework for the quantitative analysis of all credits as well as generates credit scores and collateral scores allowing easier comparison of credits. The team also uses qualitative analysis to focus on an issuer’s core business competencies, management expertise, and competitive advantages. We believe that the key to capital preservation is comprehensive and fundamental credit analysis.
  1. Risk Disclosures

  2. Alternative Credit Risks