Our approach to structured finance
Working in partnership with clients, we structure bespoke deals across a variety of asset classes to deliver required outcomes. These include risk mitigation and tailored structuring for needs such as matching-adjustment eligibility. Deals may include CLOs, aviation, trade finance, swap repacks, guaranteed loans and other structured assets with a broad range of credit ratings and tenors, through GBP, EUR and USD-denominated transactions.
The strength and depth of our credit research team is leveraged to provide robust governance and we follow a disciplined investment process that incorporates, but is not bound by, environmental, social and governance criteria. Many trades enable us to use underlying assets as collateral (e.g. aircraft or real estate) for greater security against transaction risks. Our expertise includes actuarial and derivatives pricing with strong risk controls for pension schemes and insurance clients.
Our investment philosophy is focused on managing the downside, given the asymmetric risk profile of debt investing. As such, we lend against well-structured assets with security over the underlying assets and/or cashflows. We place high value on financial covenants, and avoid highly subordinated debt positions. We take the view that persistent excess returns come via excellent deal sourcing, not extra risk. We therefore avoid the higher risk parts of the credit spectrum, and instead focus on sourcing attractive deals the broader market may not see. We also embrace newer sectors and structures that may offer ‘complexity’ or ‘novelty’ premia.
Benefits of structured finance
Clarity for investors seeking long-dated cash flows.
Key risks of structured finance
Structured finance team
Explore our real assets range
Outcome-oriented solutions in real estate, across equity debt and long income, through strategies that span the risk spectrum, from lower-risk options generating long-term income to more opportunistic investments.
Our deep market access allows us to source high-quality projects, delivered through a range of debt and equity opportunities. We focus on stable, long-term income generation and efficient execution.
We finance bespoke structured finance and senior private corporate debt transactions, seeking to meet a range of client outcomes.
Real assets multi-asset
Our integrated real asset platform allows us to collaborate with our clients to design bespoke multi-asset portfolios that meet a wide variety of long-term investment and return objectives.
Real Assets Study 2024
Demand remains strong, but the investment drivers are changing. At a time of macroeconomic uncertainty, real assets continue to play a significant role in the investment strategies of global institutions. The sixth edition of the Aviva Investors Real Assets Study is our biggest yet and seeks to answer some key questions.