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Key Criteria for Effective and Successful Managers of Structured Credit Assets

M&G, a leading investment firm, has outlined the key criteria that define an effective and successful manager of structured credit assets. With over 40 years of experience in the European private and alternative debt markets, M&G emphasizes the importance of pedigree, in-house origination capability, speed, flexibility, scale, and a dedicated team in managing structured credit investments.

According to M&G, having a long-standing presence in the structured credit market is crucial for accessing unique deal flow and identifying attractive risk/reward opportunities. The ability to source, evaluate, and transact on potential opportunities ahead of the competition requires deep sector knowledge and analytical capabilities. Successful managers in the structured credit market have the expertise and resources to respond, adapt, and innovate within the rapidly evolving asset class.

Furthermore, M&G highlights the importance of building a dedicated private-side investment team with market-leading sector experience and significant investment capability. The Structured Credit Team at M&G comprises 40 professionals managing €7.5 billion in assets under management, supported by a strong research function.

However, it is important to note the key risks associated with structured credit investments, including credit risk, liquidity risk, concentration risk, equity risk, prepayment risk, derivative risk, and currency risk. Investors are advised to carefully consider these risks before making investment decisions.

Overall, M&G’s insights provide valuable guidance for investors looking to navigate the complex world of structured credit assets and identify effective managers in the field.

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