JMP Credit Advisors LLC is an asset management platform established to underwrite and manage investments in senior secured debt. We currently manage approximately $800 million through two collateralized loan obligations, or CLOs.
We originated the portfolio and completed the securitization of JMP Credit Advisors CLO I in May 2007, issuing $455 million of secured notes and retaining all $45 million of equity in the vehicle. 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, raising more than $322 million of third-party capital.
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 scrutinize 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 defensive at all points in the economic cycle.