CarVal Investors’ structured credit investments include residential and commercial mortgage-backed securities, collateralized loan obligations and other asset-backed securities primarily in the U.S. and Western Europe.
CarVal believes its capabilities and experience in whole loans, leveraged loans and commercial real estate provide a competitive advantage in underwriting RMBS, CMBS and CLO securities.
In addition to being highly liquid, an additional benefit of Structured Credit is that it brings together multiple CarVal teams who routinely collaborate to evaluate investment opportunities in different structured credit securities.
CarVal’s focus in Structured Credit has historically been on investments in safer havens with predictable cash flows. The CarVal team is constantly monitoring the upside and downside of each sector and each position specifically. Using fundamental analysis and a keen awareness of the supply and demand condition for each financial asset, currently and in the future, the team actively trades each sector.