JMP Credit Advisors LLC is an asset management platform that underwrites and manages investments in senior secured debt. We currently manage approximately $1.1 billion through three collateralized loan obligations, or CLOs.
We entered this business in May 2007, when we originated and completed the securitization of our first fund, JMP Credit Advisors CLO I, issuing $455 million of secured notes. After successfully managing the portfolio through the “Great Recession,” we reentered the securitization market with a new $344 million CLO, JMP Credit Advisors CLO II, in the second quarter of 2013. In the third quarter of 2014, we again accessed the CLO market, securitizing a $371 million CLO, JMP Credit Advisors CLO III.
Our investment philosophy is to balance risk and return, thereby protecting the security of the CLO note holders while maximizing the returns to the CLO equity owners. We do this by investing in the highest-quality loans with the most attractive yields. We undertake a rigorous underwriting process to ensure that each investment has the appropriate credit fundamentals and fits the needs of each CLO. We invest in companies that have suitable capital structures, established and defensible business models, experienced and proven management teams, and strong cash flows.
Once investments are in a portfolio, we regularly review them to ensure that they are performing to our portfolio managers’ expectations. We actively manage the portfolios and regularly rebalance them based on economic, industry, or company-specific events. The results of our intensive underwriting and active management are portfolios that are diverse across geography, industry and obligor and are defensively positioned at all points in the economic cycle.