Interest in listing structured credit investments on exchanges is heating up according to delegates. Carodor, managed by Washington Square Investment Management, was listed earlier this year (DW, 4/14) and market watchers said more are in the works. The companies target returns in the mid-teens range, according to panelists.
Vanderbilt Financial Trust, a New York based fixed income portfolio manager has also launched a master limited partnership and hopes to list this on an exchange. These partnerships can invest in a broad range of credit products including synthetic CDOs and single tranche deals. The entity allows for the pass through of income to its investors. This avoids double taxation on profits often paid by corporations, which pay corporate income tax in addition to its shareholders paying taxes on dividends.
This option works best for non mark-to-market investors who want the added liquidity that shares provide, said Patrick Livney, ceo of Vanderbilt, at the conference.
