Logo for: AGL Credit Management

Investment Model

AGL is a fundamentals based long-term investor focused on delivering safety plus robust risk adjusted cash returns across all phases of credit cycles and market conditions.

AGL'S Investment Style

  • Responsible steward for all investors: both debt and equity
  • Protection of invested principal is paramount
    • Safeguarding invest capital = robust debt protection and consistent equity returns
  • Active management increases portfolio value relative to debt + equity
    • Creates a reserve for the “unexpected”; market term is building par
  • Maximize risk adjusted returns
    • More return for risk; lower WARF + higher WAS than the market (WARF/WAS are market acronyms for risk and return)
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AGL’s Differentiated Model: Three Interrelated Pillars

  • The Investment Research, Portfolio Management and Risk Management Functions are highly integrated and governed by the Investment Committee (“IC”)
  • The IC meets daily to review, discuss, and decide on initial screening recommendations, investment decisions, and individual borrower updates and changes
  • Special scrutiny given to “Watch List” and Stressed Loans
  • Focus on recovery valuation if investment projected to return less than par
  • Decision rationale and actions on Stressed Loans is significant value added

  • High selectivity with long-term investment horizon
  • In-depth Private Side analysis
  • Conservatively assumes no trading liquidity
  • Cherry-picking loans originated by broad group of lending originators, mainly banks
  • Ongoing Reassessment of borrower’s debt capacity and loan value plus active comparison to actionable market prices
  • Borrower level stress testing

  • High diversification with specific internal targets for ratings profile and risk adjusted returns
  • Portfolio re-balancing initiatives
  • Strong primary and secondary loan market access and interaction
  • Recommendations to continuously optimize each portfolio where loan prices diverge from AGL internal valuations
  • Fund level analytics and stress testing

An innovative, actively managed and outcome-driven approach to credit strategies investing in bank loans.

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