We have a long history of investing in senior loans and significantly increased our senior loan exposure across our high yield strategies starting in early 2011 to enhance, strengthen, and diversify our high yield portfolios. We believe senior loans can be highly accretive to portfolio construction as a result of their strong downside protection, relatively low volatility, and low correlations to many fixed income and other asset classes. More recently, we have launched two strategies dedicated to the management of senior loans.
SENIOR LOAN:Our Senior Loan Strategy, launched in 2013, invests in floating-rate senior secured loans of non-investment grade companies. The Senior Loan Strategy seeks to outperform the S&P/LSTA Leveraged Loan Index with below‐average volatility. Post offers separately managed accounts in the Senior Loan Strategy, as well as a limited partnership fund and a QIAIF.
CLO MANAGEMENT:We launched a CLO Management Strategy as a natural extension of our Senior Loan Strategy, pricing our first CLO in April 2018. The CLO Management Strategy invests in a highly diversified portfolio of floating-rate senior secured loans of non-investment grade companies and is funded by the issuance of tranched CLO liabilities and third party equity.