ING Investment Management Americas is preparing to market its senior loan products to foundations and endowments. ING is planning to launch a leveraged loan vehicle with customized amounts of leverage, via a total return swap. The firm is also considering bringing its senior loans capability to the market through collateralized loan obligations, said Mark Weber, chief marketing officer.
ING's senior loan team of 29 people in Scottsdale, Ariz., manages $5 billion in retail money at the moment, but ING wants to bring in institutional money. The portfolio manager is Dan Norman. With spreads on senior loans compressing, unleveraged investments do not post great returns, so institutions would be wise to invest through a CLO, where there is inherent leverage, Weber said.