Capra Ibex’s Kurinets sees challenges and bright spots for CLO equity
by John Hintze, Asset Securitization Report
The list of factors likely to impact the collateralized loan obligation (CLO) market just keeps growing. In addition to record inflation, more aggressive rate hikes, and the floating-rate debt market’s transition to the secured overnight financing rate (SOFR) by July 2003, Russia’s invasion of Ukraine brings a whole new level of risk and uncertainty to the financial markets.
Michael Kurinets, chief investment officer and portfolio manager since 2013 at Capra Ibex Advisors, an investment and risk advisor to high-profile names including First Republic Bank and J.P. Morgan, spoke to Asset Securitization Report about how today’s changing dynamics could impact CLOs. Previously heading up Credit Suisse’s secondary trading desk for CLOs and collateralized debt obligations (CDOs), Kurinets sees a CLO market facing volatility that potentially presents both plusses and minuses for the CLO-equity investments that Capra Ibex specializes in.
You can read the full interview at Asset Securitization Report