Markets
Investing across the liquidity spectrum of European credit
Markets
Investing across the liquidity spectrum of European credit
Three Investment Platforms
ABS & CLOs
Asset Backed Securities (ABS) and Collateralised Loan Obligations (CLOs) are securitised bonds backed by a pool of debt, such as mortgages, consumer loans or leveraged loans.
We have been investing in this segment since inception, both in primary and secondary markets, with a focus on finding the best value across the capital structure and between issuers.
ABS & CLOs
Asset Backed Securities (ABS) and Collateralised Loan Obligations (CLOs) are securitised bonds backed by a pool of debt, such as mortgages, consumer loans or leveraged loans.
We have been investing in this segment since inception, both in primary and secondary markets, with a focus on finding the best value across the capital structure and between issuers.
ABS & CLOs
Asset Backed Securities (ABS) and Collateralised Loan Obligations (CLOs) are securitised bonds backed by a pool of debt, such as mortgages, consumer loans or leveraged loans.
We have been investing in this segment since inception, both in primary and secondary markets, with a focus on finding the best value across the capital structure and between issuers.
Corporate HY Bonds
Corporate HY bonds are debt instruments issued by High Yield companies. We are active across the whole capital structure, credit quality and geography, through cash and derivatives instruments, both on the long and the short side.
Financial Bonds
Financial bonds are debt instruments issued by banks and insurance companies across the capital structure including Tier 1 (AT1 and RT1), Tier 2, and senior bonds. We are active across the whole credit spectrum in both the cash and derivatives markets with a long/short flexible approach.
Credit Indices & Credit Options
A credit index is a derivative instrument composed of a basket of a broad underlying set of Credit Default Swaps. It is highly liquid and has a liquid options market. Chenavari has an extensive understanding of the fundamental and technical aspects of this asset class. Chenavari uses its proprietary risk management system to search for and manage Relative Value opportunities and efficient hedging strategies.
ABS & CLOs
Asset Backed Securities (ABS) and Collateralised Loan Obligations (CLOs) are securitised bonds backed by a pool of debt, such as mortgages, consumer loans or leveraged loans.
We have been investing in this segment since inception, both in primary and secondary markets, with a focus on finding the best value across the capital structure and between issuers.
ABS & CLOs
Asset Backed Securities (ABS) and Collateralised Loan Obligations (CLOs) are securitised bonds backed by a pool of debt, such as mortgages, consumer loans or leveraged loans.
We have been investing in this segment since inception, both in primary and secondary markets, with a focus on finding the best value across the capital structure and between issuers.
ABS & CLOs
Asset Backed Securities (ABS) and Collateralised Loan Obligations (CLOs) are securitised bonds backed by a pool of debt, such as mortgages, consumer loans or leveraged loans.
We have been investing in this segment since inception, both in primary and secondary markets, with a focus on finding the best value across the capital structure and between issuers.
Corporate HY Bonds
Corporate HY bonds are debt instruments issued by High Yield companies. We are active across the whole capital structure, credit quality and geography, through cash and derivatives instruments, both on the long and the short side.
Financial Bonds
Financial bonds are debt instruments issued by banks and insurance companies across the capital structure including Tier 1 (AT1 and RT1), Tier 2, and senior bonds. We are active across the whole credit spectrum in both the cash and derivatives markets with a long/short flexible approach.
Credit Indices & Credit Options
A credit index is a derivative instrument composed of a basket of a broad underlying set of Credit Default Swaps. It is highly liquid and has a liquid options market. Chenavari has an extensive understanding of the fundamental and technical aspects of this asset class. Chenavari uses its proprietary risk management system to search for and manage Relative Value opportunities and efficient hedging strategies.
Tradable Credit
Within Tradable Credit, Chenavari is active in Asset Backed Securities (ABS) & CLOs, Corporate HY Bonds, Financial Bonds and Credit Indices and Credit Options.
ABS & CLOs
Corporate HY Bonds
Corporate HY bonds are debt instruments issued by High Yield companies. Chenavari is active across the whole capital structure, credit quality and geography, through cash and derivatives instruments, both on the long and the short side.
Financial Bonds
Financial bonds are debt instruments issued by banks and insurance companies across the capital structure including Tier 1 (AT1 and RT1), Tier 2, and senior bonds. Chenavari is active across the whole credit spectrum in both the cash and derivatives markets with a long/short flexible approach.
CREDIT INDICES & CREDIT OPTIONS
A credit index is a derivative instrument composed of a basket of a broad underlying set of Credit Default Swaps. It is highly liquid and has a liquid options market. Chenavari has an extensive understanding of the fundamental and technical aspects of this asset class. Chenavari uses its proprietary risk management system to search for and manage Relative Value opportunities and efficient hedging strategies.
Private Credit
Chenavari has invested in the European Private Credit Markets since 2011. Its specialised team sources investment opportunities both through direct origination and partnership with diverse European Specialty Finance platforms.
The strategy also benefits from our long history in European ABS and bank loan portfolio acquisitions, granting us proprietary access to essential credit data points across European jurisdictions and asset classes.
Portfolio Acquisitions
Portfolio acquisitions involve acquiring performing or re-performing loan portfolios, mostly from banks and often in a less competitive environment, targeting a stable return profile mitigating downside through carefully negotiated structural features. Primarily sourcing transactions directly from financial institutions, Chenavari has been providing access to this market since 2011 through portfolios diversified in terms of asset classes: mortgages, consumer loans, auto loans, SME loans.
Credit Origination (Specialty Finance)
Credit Origination (Specialty Finance) involves partnering with established specialty finance/fintech lenders to finance their origination in a structured warehouse or forward flow transaction. This strategy involves transforming the pool of loans into public securities. Chenavari has been an active player since 2011 and offers access to a diverse mix of asset classes: mortgages, consumer loans, auto loans, SME loans.
Regulatory Capital (Risk Sharing)
Risk-sharing transactions are transactions issued by banks in jurisdictions subject to Basel rules in order to manage their regulatory capital. Through its investment expertise, Chenavari gives investors direct exposure to diversified core bank lending portfolios. Chenavari tends to focus on portfolio of loans granted to corporates and SMEs with an average rating of BBB-/BB+ and attractive structure.
Real Assets (Shipping, Trade Finance)
Chenavari uses its knowledge and experience of the trade finance and marine transportation markets to offer investors access to investment strategies that finance the real assets value chain.
Through its proprietary origination and execution capabilities, Chenavari builds diversified portfolios of senior loans secured by the tangible collateral financed.
While hard assets lending tends to be shunned by traditional capital sources due to regulatory changes, among other factors, there is a growing appetite from borrowers in these markets to source capital from alternative lenders.
Chenavari’s expertise is key in addressing borrowers’ funding needs with speed of underwriting and execution, whilst prioritising capital protection through effective structuring.
REAL ESTATE DEBT
Benefiting from an extensive independent and multi-channel sourcing network, Chenavari offers senior and junior investment strategies that finance value-add Real Estate projects in core locations where downside protection is provided through asset/corporate security.
As an asset manager committed to responsible investment practice and recognizing that climate change is real and requires urgent action, Chenavari develops strategies through which it helps finance restructuring, renovation and repositioning buildings to improve their sustainability credentials and reduce their carbon emissions and also finance the development of energy-efficient and low-carbon assets.
Leveraged Finance
Chenavari has been active in the European Leveraged Loan and CLO market since the Firm’s inception via its ABS fund and, from 2012 onwards, through the acquisition of a CLO 1.0 platform.
Since 2014 the team has issued European CLO 2.0 under its proprietary Toro CLO brand. Its management style is characterised by strict credit and pricing discipline while building conservative, well-diversified portfolios of senior secured European loans. The monitoring and management of new investments is based on the same principles of prudence and conservativeness across the board. Since 2019, the team has been systematically developing its ESG integration approach. This includes applying Chenavari’s ESG Exclusion Principles (since 2019), applying a Controversy Scan, an early warning system to identify any flagrant ESG vulnerabilities (since July 2021) and scoring borrowers in TCLO vehicles with its proprietary ESG rating model.
Chenavari’s leveraged finance platform, consisting of CLOs and other structures/funds, permits the team to have an efficient approach to investing/allocating in popular markets as well as making disposals in underperforming credits.
Chenavari Toro’s direct investment in each new CLO demonstrates direct alignment with investors. This means deal performance takes precedence over AUM growth, and a careful and conservative approach to investing.
Investment Solutions
LONG/SHORT CREDIT UCITS
Fundamental & trading-oriented Long/Short Credit UCITS fund with dynamic allocation to European Corporate and Financials strategies. The fund seeks consistent mid-to-high single digit net returns in all market environments, with limited drawdown, low volatility, and low correlation to the main asset classes. Find out moreCORE VALUE CREDIT
An opportunistic strategy designed to exploit opportunities across select segments of the credit markets, including Tradable Credit and Private Credit investment opportunities, focusing on investments with fundamental value and structural protection. Find out moreDYNAMIC SHORT CREDIT
Fundamentally based, dynamic short credit strategy designed to provide diversification and optimised hedge to typically long-biased investors. Find out moreTRADE FINANCE
Fundamental investment strategy aiming at generating returns decorrelated from broader credit markets and interest rates by investing in secured bilateral trade finance facilities extended to borrowers. Find out moreEUROPEAN BANK DELEVERAGING
A private credit strategy investing in granular loan portfolios of consumer credit, mortgages and SME loans directly sourced from bank balance sheet and specialty finance/fintech loan originators. Find out more SFDR DisclosureSPECIALITY FINANCE
Opportunistic private credit fund investing across all private credit investment strategies of Chenavari, including senior asset-backed loans secured by real assets (real estate, aircraft, shipping and other real assets), trade collateral (trade finance), and bank loan portfolio acquisitions, specialty finance credit origination programs (consumer, mortgage, leasing) and regulatory capital risk sharing bank transactions Find out moreREAL ESTATE DECARBONISATION
A private debt investment strategy that aims to contribute to the decarbonisation of the real estate market in France and major city in Core Eurozone Countries. The approach is to finance the restructuring, renovation and repositioning of buildings to improve their sustainability credentials and reduce their carbon dioxide emissions, and to finance the construction of real estate assets in line with the Environmental Regulation 2020 (“RE2020”) in France or its equivalent in other European Union countries. Find out moreLISTED FUNDS
Chenavari manages a vehicle listed on the London Stock Exchange, predicated on the success of the firm’s existing strategies, primarily the firm’s initial ABS strategy which invests and trades in a portfolio of asset-backed securities, based upon investment opportunities that principally arose from the 2008 global financial crisis. The strategy seeks to generate an attractive absolute return through investing and trading opportunistically, in structured credit markets or asset backed transactions via two core strategies: Public ABS/CLOs Strategy and Direct Origination Strategy. Find out moreMANAGED ACCOUNTS
Chenavari’s range of expertise enables investors to access a broad spectrum of risk and return, utilising its knowledge and experience to create customised solutions. Since 2008, Chenavari has managed more than 15 single client funds for an aggregate capital of $3.8bn across pension funds, fund of funds and sovereign wealth funds. It offers flexible investment solutions with respect to liquidity, duration, and portfolio composition. Find out more- OPEN-ENDED FUNDS
- CLOSED-ENDED FUNDS
- LISTED FUNDS
- MANAGED ACCOUNTS
LONG/SHORT CREDIT UCITS
CORE VALUE CREDIT
An opportunistic strategy designed to exploit opportunities across select segments of the credit markets, including Tradable Credit and Private Credit investment opportunities, focussing on investments with fundamental value and structural protection.
DYNAMIC SHORT CREDIT
Fundamentally based, dynamic short credit strategy designed to provide diversification and optimised hedge to typically long-biased investors.
TRADE FINANCE
Fundamental investment strategy aiming at generating returns decorrelated from broader credit markets and interest rates by investing in secured bilateral trade finance facilities extended to borrowers.
EUROPEAN BANK DELEVERAGING
A private credit strategy investing in granular loan portfolios of consumer credit, mortgages and SME loans directly sourced from bank balance sheet and specialty finance/fintech loan originators.
SPECIALTY FINANCE
Opportunistic private credit strategy investing across all private credit investment strategies of Chenavari, including senior asset-backed loans secured by real assets (real estate, aircraft, shipping and other real assets), trade collateral (trade finance), and bank loan portfolio acquisitions, specialty finance credit origination programs (consumer, mortgage, leasing) and regulatory capital risk sharing bank transactions.
REAL ESTATE DECARBONISATION
A private debt investment strategy that aims to contribute to the decarbonisation of the real estate market in France and major city in Core Eurozone Countries.
The approach is to finance the restructuring, renovation and repositioning of buildings to improve their sustainability credentials and reduce their carbon dioxide emissions, and to finance the construction of real estate assets in line with the Environmental Regulation 2020 (“RE2020”) in France or its equivalent in other European Union countries.
CHENAVARI TORO INCOME
FUND
Chenavari manages a vehicle listed on the London Stock Exchange, predicated on the success of the firm’s existing strategies, primarily the firm’s initial ABS strategy which invests and trades in a portfolio of asset-backed securities, based upon investment opportunities that principally arose from the 2008 global financial crisis.
The strategy seeks to generate an attractive absolute return through investing and trading opportunistically, in structured credit markets or asset backed transactions via two core strategies: Public ABS/CLOs Strategy and Direct Origination Strategy.
MANAGED ACCOUNTS
Chenavari’s range of expertise enables investors to access a broad spectrum of risk and return, utilising its knowledge and experience to create customised solutions.
Since 2008, Chenavari has managed more than 15 single client funds for an aggregate capital of $3.8bn across pension funds, fund of funds and sovereign wealth funds. It offers flexible investment solutions with respect to liquidity, duration, and portfolio composition.
TORO
MANAGED ACCOUNTS
Investment Process
Our investment process is an iterative loop involving constant evaluation of different inputs. These include combining our top-down macro view with fundamental analysis.
Our expertise across the liquidity spectrum, supported by Chenavari desk analysts model, allows the investment team to decipher comprehensive proprietary performance data and market intelligence across different but inter-connected segments of the market.
Regular forums such as investment committees and portfolio reviews allow constructive debates between investment professionals and risk team, mitigating downside for our portfolios.
Macro analysis and assessment of the market environment help us define our medium-term outlook relevant for each of our strategies. Through daily meetings, we assess the impact of the most recent macro indicators, regulatory developments, corporate and other news-flow on our portfolios.
Fundamental analysis involves understanding the company’s business, both financial and non-financial characteristics, including relevant ESG factors or criteria.
Through our fundamental lens, we seek attractive risk-adjusted value opportunities, across capital structures, between sectors, issuers, borrowers and across maturities. Beyond fundamentals, risk management, timing and quality of execution play an equal part in our decisions to invest.
Driven by a combination of hard and soft, self-imposed limits with the aim of creating a diversified portfolio which respects the liquidity profile of the fund or mandate we manage.
For Tradable strategies, this includes daily market risk and limits monitoring. For Private Credit strategies, monitoring includes ongoing dialogues with the borrowers or originators, checking covenant triggers, business plans and remittance reports, and re-testing the underwriting base case with new data.