Credit Suisse & GSO Capital - Structured Credit Reputation?

creditrevolver's picture
Rank: Baboon | banana points 106

Hello WSOers,

What is GSO's reputation in the CLO/Structured Credit space? I know they rank #1 on the league tables in terms of deals/deal size but was looking for a bit more. CS is two so I was curious as well.

Also, do CLO/CDO teams at top shops (GSO, Octagon, etc.) pick all their own credits in the CLO? Was talking to a manager at a top 10 fund who said that some shops go elsewhere (not in-house) to find the credits to put in the CLOs. Was curious.

Thanks!

Comments (8)

Jan 31, 2019

"Structured Credit" usually incorporates teams that are buying and selling different tranches of CLOs that are issued in the primary or secondary market. On a typical credit platform, this team is completely different than the team buying individual leveraged loans and high yield bonds for their own CLOs and opportunistic funds. GSO is considered one of the best in this space and Credit Suisse is certainly up there too although probably a tier below.

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Jan 31, 2019

Gotcha. Thanks for the help. Do you think many people at GSO structured credit stay in that area? Or are lateral moves possible in a team like Structured Credit at GSO

And by 'best in the area' are you referring to the team buying the leveraged loans, or the team buying/selling the tranches?
Thx!

Feb 1, 2019

Structured credit is so much more than just CLOs....I would say GSO is up there but there are a lot of strong structured credit teams out there focusing across CLO, CDO, CMBS, RMBS, ABS strategies plus a lot of others

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Jan 31, 2019

Agreed. I guess I was just focusing on CLOs because the shop I'm going to only issues CLOs (cash flow). so I wanted to see how 'wanted' the skillset would be at top3 shops.
What other shops were you thinking of? Places like Octagon Credit (that one came to mind)?

Feb 1, 2019

I mean there are shops that will invest in third party issued CLO's (very long list there) and shops that will also issue their own. OZ, CVC, Ares, Carlyle are some for the latter

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Jan 31, 2019

Good to know, thanks.
And in conjuction with debtguy's post earlier, I'm assuming these shops will invest in the loans directly when issuing the CLOs.

Feb 1, 2019

A lot of the firms launch drawdown structures to invest in say the equity or mezz of a CLO or CDO that they launch

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Jan 31, 2019
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